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Facebook, Twitter ads lift mobile revenue

Dec 18 2012 08:08

New York - New ad products from Facebook and Twitter have given US mobile advertising a boost, bringing revenues for the sector to more than $4bn this year, a research firm said Monday.

The eMarketer report said US mobile ad spending is growing more quickly than previously expected, helped by Facebook's mobile newsfeed ads and Twitter's Promoted Products.

With the new offerings, eMarketer expects overall spending on mobile advertising in the US, including display, search and messaging-based ads served to mobile phones and tablets, will rise 180% this year to more than $4bn.

That compares with a forecast in September 2012 of just $2.61bn.

Now eMarketer expects US mobile ad spending to reach $7.19bn next year and nearly $21bn by 2016, a big upward revision.

Facebook's mobile performance in the third quarter is one major reason for the change, eMarketer said.

Before Facebook's earnings call, most researchers and analysts expected US mobile ad revenues of roughly $45 to $100m, according to figures examined by eMarketer. Most analysts now estimates Facebook's US mobile ad revenues will hit $339m in 2012.

Google also posted better-than-expected mobile ad growth in the past quarter and now controls 56.6% of the US mobile advertising market, eMarketer estimates.

Most of Google's mobile ad revenues come from search, and eMarketer estimates Google maintains a 93.3% share of the overall $1.99bn US mobile search ad market.

The report said Twitter's 2012 US mobile ad revenues have also been revised upward to $134.9m from $116.8m expected as of September, and gives the group some 3.5% of the total US mobile ad market.

Apple currently holds an estimated 6.7% of the US mobile display ad market, and has the potential to increase that as it sells more iPads and iPhones.

Mobile still accounts for just 2.4% of total ad spending in the US this year but will reach 11% by 2016, when it will overtake radio but still be below print, eMarketer said.

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