Mobile ad revenues are still a fraction of search and display ad revenues, according to IAB’s annual Internet Advertising Revenue Report. U.S. mobile ad revenue was about $1.6 billion last year, up over 100 per cent from $780 million in 2010. For comparison, search and display revenues were $14.9 and $7 billion, respectively.
Many assume that mobile ads will be the next huge ad market because spend still badly lags consumer engagement. However, the engagement gap may never be closed because mobile ads are less effective that their desktop counterparts and uncertainty surrounds local ads on mobile, a potential goldmine for the sector. Nonetheless, it’s still a massive opportunity.
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