Millennial Media put in a bid to acquire the second-largest standalone mobile ad network, Jumptap.
The move combines the two mobile ad networks into what will become a massive new mobile advertising company.
After the acquisition, Millennial’s own estimates peg its potential full-year 2013 revenue at between $US340-$US350 million.
With revenue in that range we estimate that Millennial will skyrocket to an almost 30% share for 2013, which would put it roughly on par with Google (only a percentage point and a half behind).
Based on numbers from IDC, Millennial Media held about 18% of the U.S. mobile display ad market with in 2012 with roughly $US151 million in revenue. Jumptap, on the other hand, generated revenue of about $US90 million for a 10.7% market share.
Google has long held a dominant place in the U.S. mobile display ad landscape. During 2012, it generated $US243 million in U.S. mobile display ad revenue, for a 29% market share of the U.S. market.
Google’s U.S. mobile display ad revenue grew 90% year-over-year between 2011 and 2012, according to eMarketer.
Millennial has grown revenue quickly, but mobile ad networks face a tough market as they try to build scale to compete with heavyweight mobile properties like Facebook and as they try to develop the the ability to target specific audiences across screens, often in real-time. Also, ad buyers are relying more and more on high-tech ad solutions of their own, such as demand-side platforms or DSPs, and large publishers are sometimes going directly to agencies, or launching closed private networks for their inventory.
Note: This data is U.S.-only and excludes any mobile search ad revenue.
Here’s an alternative look at the data, showing full mobile display ad revenue figures and growth. In 2013, after the Jumptap acquisition, Google and Millennial Media will combine for over $US700 million in U.S mobile display ad revenue.
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