Mobile advertising has taken off, and we have Google and Apple to thank for it. Global revenues are expected to reach $3.5 billion this year and $24 billion by 2015, according to Informa Telecoms & Media.
It’s largely owing to Google and Apple constantly trying to get one-up on the other that we’ve seen such increases in spending and advancements in techniques. But the news is good because the results are smashing.
Almost half of mobile ads are now sending traffic directly to sites and a third are sending traffic to a direct landing page, according to the September 2010 S.M.A.R.T Report from Millennial Media.
Let the battle begin
Both Google and Apple have acquired platforms for their mobile ad armoury. Google bought AdMob in May and Apple bought Quattro Wireless in January but didn’t launch iAd until July. Google was the market leader in the US until recently. In September, Bloomberg Business Week reported that Google, Microsoft and Yahoo! had all lost market share to Apple’s iAd and that Apple and Google had 21 per cent market share each. There has been some controversy about this claim, however, with some analysts insisting Google is still ahead. If Apple’s claims to have sold $60 million in iAds before launch are to be believed, however, then Google does indeed have something to worry about.
Google is expected to generate $1 billion in revenues from mobile in 2010, with a significant proportion coming from mobile advertising, but nobody knows the real figures just yet. In 2009, a mere $250 million across the whole US market was ascribed to mobile advertising.
iAd customers happy
Apple is confident of continued growth and so far its customers are happy.
Rob Master of Unilever, whose first iAd made its debut in July, told Bloomberg Business Week that he is “extremely happy” with the results of its ad campaigns, saying that more than 20 percent of people who click on Unilever iAds—which feature video and an interactive game—check out the ad a second time.
What is crystal clear is how this innovation war is good for mobile advertisers everywhere. Long may the battle last!
MarketingVOX, Marketing Data Roundup, 29 October 2010
Bloomberg Business Week, Apple Threatens Search Giants’ Mobile Ad Shares, 26 September 2010
Search Engine Land, Is Apple Really “Threatening” Google in Mobile Advertising? 1 October 2010
Guardian Media, Google and Apple prepare for mobile advertising battle, 9 August 2010