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Home Tech Mobile Advertising Revenue Up By 82 Percent

Mobile Advertising Revenue Up By 82 Percent

by Caroline Vutagwa
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Mobile adverting revenue rose to USD 8.9 billion last year from USD 5.3 billion in 2011, a percentage of 82.8.

The industry is experiencing growth rates of 88.8 percent in search, 87.3 percent in display and 40.2% in messaging at an international level, advertisements spend in these formats reflects strong growth in the sector.

Currently, the advertising revenue remains controlled by the search segment, which represented in US$4.7 billion which is a  52.8 percentage in the  total global mobile advertising revenue in 2012. Display advertising accounted for 38.7 percent and messaging 8.5 percent.

The segments by sections in the world for 2012 include:

  • Asia-Pacific: 40.2 percent  which is USD 3,558million
  • North America: 39.8 percent which is USD 3,525 million
  • Western Europe: 16.9 percent which is USD 1,499 million
  • Central Europe: 1.3 percent which is USD 112 million
  • Middle East & Africa: 1.2 percent  which is USD109 million
  • Latin America: 0.6 percent which is USD 50 million

The progressive growth over the years has been quite strong all across the board, led by North America, which experienced a 111 percent flow over 2011 figures. Western Europe also saw a great increase, 91 percent over the previous year.

Other year-over-year turnarounds include:

  • Latin America – 71 percent
  • Central Europe – 69 percent
  • Middle-East and Africa – 68 percent
  • Asia-Pacific – 60 percent

Some of the contributing factors that lead to the increase in mobile advertising revenue are raising smart phone adoption/ 3G and 4G penetration, more time spent on mobile devices, better advertising monetization through targeting ad inventory consolidation.

“We have seen a shift from a very fragmented landscape to one that is becoming more networked,” explains Daniel Knapp, Director Advertising Research at IHS, and author of the research. “Technological innovation has simplified buying mobile inventory at scale, enabling advertisers to better reach larger audiences across multiple publishers and advertising networks,” he continues.

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