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Google and Apple Losing Mobile Advertising Market to Publishers

iad_gallery_iconResearch firm IDC today announced the release of a new report covering the mobile advertising market, noting that ad networks such as those from Google and Apple are losing traction to publishers able to use their size to drive their own advertising sales.
Where in past years, ad networks such as Google, Millennial Media, and Apple received most of the spending on mobile display ads, now publishers control the segment, thanks to very strong sales growth in the past year. Facebook, Pandora, Twitter, and The Weather Channel all registered strong sales in 2012 and all (with the exception of Pandora) popped onto the scene from zero sales in 2011. As a result, publishers controlled 52% of U.S. mobile display ad spending in 2012, compared to the 39% they received in 2011.
IDC notes that, despite slowing growth, the mobile advertising market continues to boom in the United States, growing 88% in 2012 to reach $4.5 billion to provide a massive opportunity for ad networks and publishers alike. The report notes that mobile advertising now accounts for 11% of all digital advertising, illustrating the strong momentum of mobile.

Apple has long faced an uphill battle to gain momentum with its iAd service, repeatedly slashing buy-in fees in order to lure and keep customers unwilling to commit to expensive advertising campaigns limited to Apple devices. The popularity of Apple's devices did allow Apple to rise to the number two spot behind Google in mobile display advertising, but IDC notes that Apple ($125 million gross revenue) lost that spot to Millennial Media ($151 million gross revenue) last year.

Apple's iAd program grew out of its 2010 acquisition of ad firm Quattro Wireless. Quattro founder and CEO Andy Miller left Apple in mid-2011, and since that time iAd has been overseen by senior vice president Eddy Cue as part of Apple's umbrella of Internet Software and Services.

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18 months ago

Looks like Macrumors needs more advertising revenue so that it can post complete articles. :D


In-Thread purchase
Rating: 10 Votes
18 months ago

[url=http://cdn.macrumors.com/im/macrumorsthreadlogo.gif]Image (http://www.macrumors.com/2013/04/09/google-and-apple-losing-mobile-advertising-market-to-publishers/)[/url]


Image (http://cdn.macrumors.com/article-new/2013/04/iad_gallery_icon.jpg)Research firm IDC today announced (http://www.idc.com/getdoc.jsp?containerId=prUS24063113) the release of a new report covering the mobile advertising market, noting that ad networks such as those from Google and Apple are losing traction to publishers able to use their size to drive their own advertising sales.IDC notes that, despite slowing growth, the mobile advertising market continues to boom in the United States, growing 88% in 2012 to reach $4.5 billion to provide a massive opportunity for ad networks and publishers alike. The report notes that mobile advertising now accounts for 11% of all digital advertising, illustrating the strong momentum of mobile.

Apple has long faced an uphill battle to gain momentum with its iAd service, repeatedly slashing buy-in fees (http://www.macrumors.com/2012/02/14/apple-slashes-iad-buy-in-fee-yet-again/) in order to lure and keep customers unwilling to commit to expensive advertising campaigns limited to Apple devices. The popularity of Apple's devices did allow Apple to rise to the number two spot behind Google in mobile display advertising, but IDC notes that Apple ($125 million gross revenue) lost that spot to Millennial Media ($151 million gross revenue) last year.

Apple's iAd program grew out of its

Article Link: Google and Apple Losing Mobile Advertising Market to Publishers (http://www.macrumors.com/2013/04/09/google-and-apple-losing-mobile-advertising-market-to-publishers/)


Looks like Macrumors needs more advertising revenue so that it can post complete articles. :D
Rating: 8 Votes
18 months ago
At this rate, iAd will soon be like Ping.
Rating: 5 Votes
18 months ago

Advertising: the death of all media.

I find it grotesque that entities like Facebook are referred to as publishers.

Facebook is a universe of its own. It provides advertising that Adblock cannot block: "sponsored" postings.

The real question is: how long until the next service comes along that people move to because it's not slow, bloated, broken, and filled with advertising? Then, once that new one gets a mass following, it too turns on the obscene marketing. Cycle repeats.

Look at theatres, radio and tv. Each were a haven for media types, only to eventually require new subscription services that claimed no advertising. Only to have the subscription system also polluted with advertising that we pay to see, with further exclusive variations to subscribe to that offer ad free experiences, which also succumb to "special sponsored" content that is just a euphemism for advertising.

And st the end of it all, we are bathing in unwanted overstimulation from every commercial entity, 24/7, in every space possible. It's no wonder "mental healthcare" has made massive profits on psych drugs. Noise, light, densely packed spaces filled with people and stimuli... Every second of every day is a product to be sold and marketed.


Here's the issue.

Without those annoying adverts, the internet would only consist of e-commerce and TV wouldnt exist.
Rating: 3 Votes
18 months ago
bless adblocker on cydia :)
Rating: 2 Votes
18 months ago

At this rate, iAd will soon be like Ping.


iAd is actually generated over $100 million in revenue last year, and I would assume they're not losing money on that. It's almost certainly still a growing business for Apple, so I don't think it's in any danger of being killed.

Ping was obviously a dog from its introduction. Whomever was in charge of that needs/needed to be fired.
Rating: 2 Votes
18 months ago
Advertising: the death of all media.

I find it grotesque that entities like Facebook are referred to as publishers.

Facebook is a universe of its own. It provides advertising that Adblock cannot block: "sponsored" postings.

The real question is: how long until the next service comes along that people move to because it's not slow, bloated, broken, and filled with advertising? Then, once that new one gets a mass following, it too turns on the obscene marketing. Cycle repeats.

Look at theatres, radio and tv. Each were a haven for media types, only to eventually require new subscription services that claimed no advertising. Only to have the subscription system also polluted with advertising that we pay to see, with further exclusive variations to subscribe to that offer ad free experiences, which also succumb to "special sponsored" content that is just a euphemism for advertising.

And st the end of it all, we are bathing in unwanted overstimulation from every commercial entity, 24/7, in every space possible. It's no wonder "mental healthcare" has made massive profits on psych drugs. Noise, light, densely packed spaces filled with people and stimuli... Every second of every day is a product to be sold and marketed.
Rating: 2 Votes
18 months ago

bless adblocker on cydia :)


While I echo your sentiment you wouldn't say that if you were a business person trying to penetrate the market.
Rating: 1 Votes
18 months ago
Really can't relate to the complaining about ads, in apps or elsewhere.

Is it really such a hardship that you have to look at some ad popping up on your screen or that your experience is somehow aesthetically tainted by a sponsor logo when you're getting the results of someone's hard work without a dime of payment from your pocket? This has to be a new pinnacle in whining. Getting free content or apps in exchange for an ad or two is now considered unacceptable. There are people in the world who wish like hell that was their greatest hardship in life. Get some perspective.

I'm not a fan of advertising but here's your reality check, kids. Someone has to make money off this stuff. You can either cough up a few bucks from your own pocket or pay indirectly with a few ad impressions. Personally I love the idea that some big corporation is going to give someone payment for me receiving their work for free. What's not to love about that? But pay or view ads--it has to be one or the other so pick your poison and quit whining.

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And st the end of it all, we are bathing in unwanted overstimulation from every commercial entity, 24/7, in every space possible. It's no wonder "mental healthcare" has made massive profits on psych drugs. Noise, light, densely packed spaces filled with people and stimuli... Every second of every day is a product to be sold and marketed.


Well, then, you best get off MacRumors. All those dangerous ads they post are clearly taking a heavy toll on your fragile psyche. Not trying to be flippant. Just looking out for your safety, my friend.

BTW, where did you get that lovely soapbox? And what brand of soap is it? My apologies, but I can't read it when you're standing on it.
Rating: 1 Votes
18 months ago

At this rate, iAd will soon be like Ping.


It's a shame, because they actually make advertising attractive. AdMob ads look like puke.
Rating: 1 Votes

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