March 31st, 2011
ACCUSTREAM RESEARCH: MOBILE ADVERTISING NETWORKS DELIVER $794 MILLION IN MEDIA SPEND; COLLECT $254 MILLION IN 2010 REVENUE
Seaside, Calif. Mobile advertising networks delivered 340 billion filled and billed impressions across the globe in 2010, generating $794 million in media spend, and earning $254.3 million in net platform and media services-related revenue, according to a comprehensive sector analytics report released by AccuStream Research
The report, Mobile Advertising Networks 2009 – 2013: Gross Media Spend and Platform Revenue, analyzes total inventory by network, geography, billing models, pricing (CPC, CPM, CPA and eCPM) by ad format, fill rates, click-through rates and participation percentages.
Gross media spend is calculated against each network’s inventory, fill rates, pricing, billing and click-through rates. Net revenue is calculated against gross media spend and participation percentages by network to yield the market’s value.
The report’s extensive data sets, augmented by informative Q & A’s with the sector’s leading mobile ad networks, indicate that following a year when gross billings increased by 190% and network revenue grew by 180%, that triple-digit growth in 2011 can be projected persuasively.
Mobile ad network Q & A’s and analysis contained in this report include Aditic, AdMarvel, AdFonic, BuzzCity, Greystripe, InMobi, MobileTheory, Moolah Media, MobGold, Millennial Media, Jumptap, Smaato and Zestadz, among many others.
A billed impression analysis when calculated as an eCPM reveals the market is valued, on average, at $2.34, the U.S. falling within that range, Europe higher (at $3.45), Asia and Latin America lower.
The U.S. market generated 49.1% of gross media spend, Europe 25.7% and Asia 20.7%, based on analysis of each network’s billed impressions by geography. Video impressions currently make up approximately 4% of total inventory served.
“Mobile ad networks operate sophisticated and powerful platforms for robust impression ingest with precise global delivery capabilities measured in milliseconds,” commented research director Paul A. Palumbo.
“Network business models work well at scale, and with sales team talent stationed across the globe these market positions appear defensible and not easily duplicated; Apple and Google concluded it made more sense to buy their way in.”
AccuStream Research is a publishing, research and consulting firm producing investment grade sector reports covering online audio, video, CDN, OVP, Video CMS, Video Ad Networks, video advertising, Mobile Ad Networks, and subscription media stores.
Contact: Paul A. Palumbo, email@example.com