For more than 15 years, mobile advertising has been heralded as the next great wave of growth in the online advertising business.
And for more than 15 years, mobile advertising has been one big fat disappointment.
But, thanks to the smartphone revolution, mobile may finally be on the verge of living up to its hype.
IDC recently estimated that the mobile ad market was about $600 million in 2011. That’s still puny relative to the broader digital advertising market (Google alone will do about $40 billion of revenue in 2011.) But it’s growing fast.
And now a company called Millennial Media has filed for an IPO, which allows us to take a close look at a mobile ad business. Millennial is a mobile advertising network. It’s one of the largest mobile ad players out there, second only to Google. (Here’s a chart of the mobile ad landscape, with Millenial in context).
We’ve published our analysis of Millennial’s business. Here are some quick takeaways:
- Millennial is now doing about $100 million of annual revenue
- Revenues are growing fast, up more than 100% in Q3
- Losses are narrowing, which suggests that Millennial is gaining operating leverage.
Photo: Business Insider Intelligence
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