emarketer report

Mobile Ad Spending Up 180% In 2012 To $4B

Spending on mobile ads in the United States grew to $4 billion in 2012, up 180% from $1.45 billion last year. Google still dominated mobile advertising with a 56.6% share of the market, but mobile newcomer Facebook is gaining ground fast.

U.S. mobile ad spending is growing quicker than expected, according to a new report from eMarketer released this week.

“Native” ad formats, such as Facebook’s mobile newsfeed ads and Twitter’s Promoted Products, and better-than-expected mobile growth from Google have helped push mobile ad spending to $4.06 billion in 2012, a 180% increase over the $1.45 billion spent in 2011.

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The research firm expects that market to continue to grow, reaching $7.19 billion in 2013 and $21 billion by 2016.

Google continues to dominate mobile ads, with a 56.6% share ($2.2 billion) of the market, according to eMarketer. Facebook, which didn’t enter the mobile ad space until earlier this year, is a distant second, with 8.8% ($339 million) of the market.

While Google was the undisputed champion of mobile search ads in 2012 — taking 93.3% of the the $1.99 billion U.S. mobile search ad market — it was edged out by Facebook in mobile display ads, eMarketer said.

Facebook captured an 18.4% share of the mobile display ad market, compared with Google’s 17%, according to eMarketer. The search giant, however, is projected to regain the lead in mobile display by 2014, primarily due to mobile monetization of Google, according to the report.

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