IDC has just released the results of its latest research that highlighted the trends in smartphone advertising.
Global market intelligence provider, IDC, has produced a report that has revealed some important trends in the mobile channel regarding the use of social media marketing and its position in the ad market.
The research findings have been considered to be eye-opening by many in the industry.
What they showed in the report entitled “2012 U.S. Mobile Advertising Market Sizing and Vendor Market Shares”, was that large social media marketing publishers, including Facebook, Twitter, and Pandora, are experiencing a continual growth in the ad market, to the point that they are starting to take a control position over the display advertising channel.
Those social media marketing platforms currently hold 52 percent of the mobile ad space.
This social media marketing shift represents a major change in the mobile advertising trends in the market, which had previously been controlled by Apple, Google, and other large ad networks.
The powerful growth in the spending in advertising over mobile channels in the United States has been steadily continuing, even as the annual growth rates are continuing to decrease. For instance, the growth of the market in 2012 was 88 percent. This was a decrease in the rate of growth when compared to the year before, as 2011 experienced a growth of 125 percent. At the same time, the spending in 2012 reached a massive $4.5 billion, when compared to the $2.4 billion that had been spent in 2011 for the superior growth results.
The share in the mobile market space for all digital advertising came up to 11 percent in 2012. In 2011, it had been 7 percent, which represents a substantial increase. In 2013, IDC is expecting a growth rate of 55 to 65 percent, with a total spending of about $7 billion within the United States.
According to the vice president of media and entertainment at IDC, Karsten Weide, “Mobile ad networks are losing market share to publishers, and we expect them to lose even more going forward.” Weide pointed out that social media marketing is on the upswing, but networks – especially the independent ones – are taking their first steps into a very difficult phase in which there is rapidly growing competition with publishers in an environment where the revenue share is shrinking.