Mobile Ad Revenue Expected to Grow 80% This Year

iphone-mobile-advertisingCompanies that launch mobile apps have a lot at stake; brand, their reputation and revenue. But ‘free’ apps don’t need to worry about revenue – because they are free – right?

Not quite. Almost all free apps get their source of revenue from mobile advertising. In fact, mobile advertising isn’t a small market. According to BtoB Magazine, revenue from global mobile advertising is expected to grow 80% this year:

“Worldwide mobile ad revenue is expected to reach $15.82 billion this year, an 80% increase over the $8.80 billion logged in 2012, according to a forecast by marketing consultancy eMarketer.

Of that amount, Google Inc. will continue its mobile ad revenue dominance, accounting for $8.85 billion, or 56% of the total. Facebook Inc., which entered the mobile ad business last year, was forecast to log a bit more than $2.04 billion in mobile ad revenue this year, up from $47.0 million in 2012, while Twitter will see its mobile revenue jump to $31.0 million this year from $14.0 million, eMarketer said.

Google also leads in all digital ad spending worldwide, gaining $32.73 billion in 2012, or just less than 32% of the global total. eMarketer forecast that Google will increase its market share this year.”

So what does this mean for app developers? In order for mobile ad revenue to grow and both developers and mobile advertisers to benefit, apps need to be good quality, working on every device.  With so many apps out there, the cost of switching is extremely low. Mobile advertisers will put their spend to a different application if your app contains bugs or glitches. It makes real world testing that much more important.

What do you think of eMarketer’s finding? Share your thoughts on the growth of mobile ad revenue below.

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