Google and Apple Losing Mobile Advertising Market to Publishers

Today research firm IDC announced a new report on the mobile advertising market, saying that ad networks such as those from Apple and Google are losing momentum to publishers. IDC notes:

“Where in past years, ad networks such as Google, Millennial Media, and Apple received most of the spending on mobile display ads, now publishers control the segment, thanks to very strong sales growth in the past year. Facebook, Pandora, Twitter, and The Weather Channel all registered strong sales in 2012 and all (with the exception of Pandora) popped onto the scene from zero sales in 2011. As a result, publishers controlled 52% of U.S. mobile display ad spending in 2012, compared to the 39% they received in 2011”.

The report said that mobile advertising market continues to rapidly grow in the U.S. rising by 88 percent in 2012 to $4.5 billion. According to IDC estimates, mobile advertising currently accounts for 11 percent of all digital advertising.

Apple has long faced a tough battle to build up momentum with its iAd platform, repeatedly reducing buy-in fees in order to keep and lure customers unwilling to commit to advertising campaigns that are limited to Apple devices.

In 2011, the high popularity of Apple’s device allowed Apple to reach the number two spot behind Google in the ad network segment, but last year Apple ($125 million of gross revenue) lost that position to Millennial Media ($151 million of gross revenue).