Mobile Ad Spending to Top $1 Billion in 2011 [REPORT]

Spending on mobile advertising is set to grow nearly 50% to top $1 billion in 2011, according to the latest numbers from market researcher eMarketer.

The estimate has been raised significantly from previous projections largely due to “Google’s acquisition of AdMob and Apple’s introduction of the iAd,” as well as mobile ads reaching “the mainstream of digital advertising,” says the firm.

Although smaller in total dollars, the estimates mean mobile advertising is growing faster than social media advertising by eMarketer’s own projections. In August, the firm estimated that social media ad spend would grow 20.3% this year to $1.68 billion in the U.S. That compares to the torrid 79% growth rate now projected for mobile, which brings the size of the market to $743 million by the end of 2010.

Within mobile, however, eMarketer projects some interesting shifts. For instance, while text message marketing is currently the biggest area of mobile ad spending, its growth rate will soon slow dramatically and the format will be surpassed by newer formats like video and display.

Other trends we’re keeping an eye on within mobile advertising include geolocation, the evolution of mobile sites vs. mobile apps and further experimentation with rich media on mobile (which will continue to evolve with the expansion of mobile broadband).

[via mashable]

Posted in: Smartphone