Mobile Advertisers to Watch Fill Rates and Ad Network Response Times as Format Grows
Estimates and projections about the size of the U.S. mobile advertising market continue to roll in. Even research shops in Europe are watching the U.S. ad market closely and point out that the mobile market, pegged at $797 million in 2010 is the second largest in the world. Only Japan’s mobile ad market is larger. With predictions that the U.S. mobile ad market will reach $5.04 billion in 2015, what should the typical large marketer budget for mobile? Smaato’s white paper on this topic provides some answers.
Most analysts agree that there are about 300 million active mobile phone subscriptions in the U.S. and about 30% of these users search the Internet with their phones. Smaato research indicates that the average marketer budget allocation for mobile is currently between $75,000-$100,000. The creative portion of that budget typically comes in at about $15,000. And the research shows that mobile budget spending breaks out as follows:
- Search 46%
- Banner ads 29%
- Opt-in messaging 20%
- Mobile games/music/video/TV 3%
- Apps 2%
Smaato analysts cut their data another way, to give readers an understanding of the scope of mobile ad activity in the U.S. For example, based on an average launch campaign budget of $100,000 and a total nationwide spend of $797 million, about 8,000 mobile ad campaigns will appear this year, or about 21.8 campaigns per day.
Analysts further contend "'[f]ollowing years of promise, the U.S. mobile advertising marketplace has sprung into life, and will become the second billion dollar market after Japan – during 2011." The data indicates that over 50% of the U.S. population has yet to experience mobile advertising. But with more marketers preparing to spend on these campaigns and more consumers using smart mobile devices, the mobile ad market is set for exponential growth. As marketers begin to investigate this new media format, Smaato analysts observe that providers will be competing on the following key criteria: fill rates, operating systems and ad network response times.[Source: White Paper in the USmA: the US of Mobile Advertising. Smaato.com. 2010. Web. 6 Dec. 2010]