In-​App Advertising to Fuel Mobile Ad Market Growth

Projections being made about the value of the mobile advertising market  are based on the number of consumers who use smartphones and the number of marketers who are willing to spend in this new media format.  The latest data in the  Mobile Insights Report: North American and Global Editions April 2011 from InMobi shows the rosy valuations for mobile advertising are based on solid evidence.  For now, the rapidly growing mobile ad market is nearly owned by smartphone devices but the numbers could change as more consumers access content through other mobile devices.

During the first quarter of 2011, InMobi, an independent mobile ad network operator, witnessed a 17% growth rate in North American ad impressions.  Note that in-​app advertising increased 58% over the previous quarter. Over 80% of mobile ad impressions take place on smartphones. And, 2 industry giants in the operating system market are battling for dominance as the following numbers show:

  • Android: 36.9%
  • iPhone: 32.9%
  • RIM: 10.3%

Smartphones represent an ideal marketing channel, the always-​on, interactive, and social experience helps to provide reach for brands and a more immersive experience for the consumer,” says Anne Frisbie, VP Managing Director North America, InMobi.

Over 35 billion monthly mobile impressions are delivered to 314 million consumers through the InMobi network. Beyond North America, the mobile market grew by 11% during the first part of this year. The top players in the international operating system market include Nokia (19.5%), Symbian (18.1%), Android (16.8%), and iPhone (16.3%). It’s interesting to note that the Android system had the fastest growth rate internationally while iPhone experienced the largest increase in the North American market.

Analysts believe the in-​app ad delivery model will grow faster than the mobile web ad market.  As the market matures, James Lamberti, VP Global Research & Marketing at InMobi expects to see fewer ‘device and platform fragmentation issues’ of the kind that now affect the mobile web app market.

These are problems that marketers will be addressing as they decide which format works best for them in the mobile ad market.

[Source: InMobi Mobile Insights Report April 2011. InMobi​.com. Web. 23 May 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.