Mobile Ads Up–No Thanks to iPhone
U.S. mobile ads are set to grow from $169 million in 2008 to $229 million this year, according to a projection from media forecasting agency Magna. Most of that growth will come from strength in the text-message channel and from the spread of the mobile Web and its attendant display advertising.
That 36% increase is actually reduced from the 43% growth Magna forecast last year for 2009. But the company says new smartphones could energize the U.S. mobile ad sector, doubling revenue growth to $409 million by 2011.
But smartphones may be a mixed blessing, Magna found. Yes, users are logging on to the mobile Web and viewing ads placed there. But those same users are also spending a lot more time engaged with applications than with Web sites, potentially undercutting the mobile ad spend.
