SFN report: U.S. mobile ad spending totalled $320 million in '08

Posted by Erina Lin on December 17, 2010 at 10:40 AM

U.S. mobile ad spending, including display, search and messaging-based advertising, totalled US$320 million in 2008, and exceeded $593 million in 2010, according to eMarketer. In 2013, it is expected to surpass $1.5 billion, detailed in World Digital Media Trends 2010, released by the Shaping the Future of the Newspaper project and the World Association of Newspapers and News Publishers.

To break down as national versus local, back in 2005, U.S. mobile national ads accounted for $138 million, while local was only niche, according to the 2009 third quarter data from Borrell Associates. In 2014, national mobile ad spending is forecast to exceed $5.5 billion, while local mobile ads will surpass $4.7 billion.

To break down by format, in 2008, SMS accounted for $100 million, making it 63 percent of total U.S. mobile ad revenues in that year. Search totalled $39 million and display made up $21 million, each contributing 24 percent and 13 percent, respectively, according to data from the Kelsey Group and eMarketer.

In 2013, search is expected to outperform the other two formats with a great lead, reaching $2.27 billion, or 73 percent of total mobile ad revenues in the United States. Display will grow to $567 million, or 18 percent. SMS, although it will increase to $270 million, is only expected to account for 9 percent.

U.S. total mobile ad spending grows at double digits annually from 2009 to 2013, ranging from 30 percent to 43 percent. Display and search increase with higher rate - ranging from 45 percent to 60 percent, and 44 percent to 72 percent. Messaging, however, has a relatively lower rate - ranging from 12 percent to 25 percent from 2009 to 2013, according to eMarketer.

For World Digital Media Trends 2010, the SFN project has partnered with 66 research companies - including PricewaterhouseCoopers, the Pew Research Center, Magna Global, comScore, ZenithOptimedia, eMarketer, and more - to piece together the vast landscape of the world's media and advertising markets, as well as emerging trends across platforms.