SPECIAL REPORT: The State Of Mobile Advertising Q2 2012

mahi de silvaMahi de Silva of Opera

Photo: Opera

Advertisers are predicted to spend as much as $1.7 billion on mobile advertising this year, according to Mahi de Silva, Opera Software‘s evp/consumer mobile.To get a handle on this massive, and massively growing, ad space, de Silva gave Business Insider an advance look at Opera’s Q2 2012 “State of Mobile Advertising” report.

Opera’s network covers 9,000 global customers, with more than 35 billion ad impressions per month. It drove more than $250 million in revenue to mobile publishers in 2011 and is on course drive more than $400 million in 2012.

Among the key takeaways:

  • One company drives 61% per cent of revenue. Guess which it is.
  • The iPad is only at the beginning of its rise—its slice of the mobile ad business is much smaller than you think.
  • Standard ad banners are already dying. Most ads served are now in rich media, where users don’t have to leave the app or click through into another browser in order to interact with the ad.
  • Mobile ad dollars are mostly driven by just four types of clients.

iPhone is the top device in monetization performance, with an average cost-per-thousand impressions of $2.85. Android is a close second. Everyone else trails.

Apple drove 61% of global mobile ad revenue in Q2. Although the iPad is the most expensive place to advertise, it takes only 15% of revenue. 44% goes to iPhone; Android gets 27%.

Dwell time and ad interaction rates: The more sophisticated the app, the more time users spend with it—and the greater the percentage of them that hang around for the ads.

Rich media is taking over: HTML5 ads and video are now a solid majority of ad executions, compared to six months ago. Ad banners are dying.

Business, finance, news and games are the big client drivers of ad dollars worldwide. Opera sees this trend continuing in the short term.

The United States and Canada dominate mobile advertising, with with 73% of the globe's ad requests. CPMs are also the highest ($1.98).

Here's Opera's advice to clients.

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