UNITED STATES       UNITED KINGDOM   FRANCE
Boston MA Ohio Milton Keynes  
Strategy Analytics Inc Strategy Analytics Inc Strategy Analytics Ltd. Strategy Analytics
199 Wells Avenue Suite 108   Bank House, 171 Midsummer Boulevard 15, rue Reaumur
Newton MA   Milton Keynes 75003 Paris
MA 02459   MK9 1EB France
USA USA United Kingdom  
Tel: +1 617 614 0700 Tel: +1 617 614 0716 Tel: +44 1908 423600 Tel: +33 1 53 40 99 50
Fax: +1 617 614 0799
  Map/Get Directions
Fax: +1 614 431 2343 Fax: +44 1908 423650
  Map/Get Directions
Fax: +33 1 53 40 99 59
  Map/Get Directions
       
      GERMANY
Los Angeles San Francisco Bay Area London  
Strategy Analytics Inc Strategy Analytics Inc Strategy Analytics : Teligen Strategy Analytics GmbH
3282 Cortese Drive 2610 Presidio Dr. Great West House, Great West Road Sebastiansplatz 5
Los Alamitos Brentwood Brentford D-80331 Muenchen
CA 90720 CA 94513 Middlesex, TW8 9DF Germany
USA USA United Kingdom  
Tel: +1 617 614 0719 Tel: +1 617 614 0732 Tel: +44 2081 850402 Tel: +49 89 51 51 35 0
Fax: +1 562 493 0280 Fax: +1 925 308 7727 Fax: +44 2081 850419
  Map/Get Directions
Fax: +49 89 51 51 35 55
  Map/Get Directions
       
JAPAN   KOREA CHINA  
       
Strategy Analytics Inc Strategy Analytics Inc Strategy Analytics Inc  
Level 18 Yebisu Garden Place Tower 16F, Gangnam Bldg., 1321-1 59-2-102 Beijing Suncity  
4-20-3 Ebisu Shibuya-ku Seocho-dong, Seocho-gu No. 30 Litang Road, Xiaotangshan  
Tokyo 150-6018 Seoul, 137-070 Changping District, Beijing  
Japan Korea P. R. China 102209  
Tel: +81-3-5789-5935 Tel: +82 2 310 9122 Tel: +86 10 8975 5246  
  Fax: +82 2 757 7100 Fax: +86 10 8975 5246  
       
       
Informatek PK & Wise    
Grande Maison Akasaka 601 6F J's Building    
2-7-52 Akasaka Minato-ku 1487-4 Seeocho-dong Seocho-gu    
Tokyo 107-0052 Seoul 137869    
Japan Korea    
Tel: +81 3 3582 0014 Tel: +82 2 597 8756    
Fax +81 3 3582 0040 Fax: +82 2 598 9444  
close

close

Global Mobile Media Revenues To Touch $150 Billion In 2012

Revenues up 17% on 2011 to $149.8 billion; advertising spend up 85%, consumer spend up 13%

Boston, MA - April 20, 2012: 2011 was the first year that global consumer spending on media content, apps and services for mobile phones broke through the $100 billion barrier. According to the latest Global Mobile Media Forecast from Strategy Analytics, consumers are expected to increase this spend on mobile media by a further 13.4 percent from $121.8 billion in 2011 to $138.2 billion in 2012.

In contrast, advertiser spend on mobile media is expected to almost double (85.4 percent) from $6.3 billion to $11.6 billion, resulting in the total mobile media economy reaching $149.8 billion in revenue in 2012 - a 17.0 percent increase on 2011 (see Chart 1).

Chart 1

While the lion’s share of consumer spend (60.2 percent) is on data plans and web browsing - making mobile operators the key beneficiaries to the tune of $82.8 billion in 2012, up 9.5 percent on 2011 - a key driver of growth is the apps market on smartphones, such as the iPhone and Android devices. Over 23 billion apps were downloaded globally in 2011, increasing by 38 percent to over 32 billion in 2012. Apps are now the second largest category for revenues – for both consumer and advertiser spend - and are becoming the key distribution mechanism for media on mobile phones.

Apps are expected to account for 18.9 percent of global consumer spend in 2012 – $26.1 billion, up 30.7 percent on 2011 – but the strength of the apps ecosystem is also demonstrated by advertiser spend. For example, across the USA and major Western European markets as a whole, revenue from display ads on the mobile web ($934.5 million) has been overtaken by in-app advertising ($1.7 billion).

David MacQueen, Strategy Analytics’ Director of Wireless Media Strategies, explains, "Advertisers chase eyeballs so the fact that brands spend more on in-app advertising than the mobile web is a clear sign that apps are what consumers are glued to for an increasing range of activities. In the eyes of many advertisers, web browsing on the smartphone is playing second fiddle to the app economy."

Despite remaining relatively flat in terms of spend, Music remains one of the top mobile media categories globally – accounting for $16.0 billion or 11.6 percent of 2012 consumer spend. However, the way consumers' access and pay for music is changing. Ringtones are declining fast, but streaming music services such as Spotify, Pandora and Deezer - paid for by subscription or through advertising - are gaining good traction in Western Europe and the USA.

As with apps, growth of mobile video usage is increasing dramatically; 108 billion videos were watched on mobile phones in 2011, almost trebling to 280 billion in 2012. However, unlike apps, this isn’t translating into symbiotic revenue levels. Despite a 23.8 percent revenue growth, Video is likely to account for a mere 2.4 percent ($3.6 billion) of total mobile media revenues in 2012 (see Chart 2).

MacQueen explains, "Low revenues are down to many major mobile video services being free to the end user, either funded by advertising (such as YouTube) or "bundled" without additional cost by pay TV providers, such as Sky Go around Europe or AT&T U-verse in the USA. Despite the huge audience of 271 million users, ad revenues from mobile video are tiny - a meager $223m globally in 2011. While ad revenues will more than triple to $726 million in 2012, it is still clearly challenging for advertisers looking to reach consumers through video ads on smartphones."

Revenue related to Social Networking content, apps and services is expected to increase by 16.1 percent to $17.6 billion – accounting for 11.8 percent of all mobile media revenues.

Chart 2

The US Mobile Media Economy
The US mobile media economy is expected to outperform the global growth figure, increasing by 22.1 percent to nearly $38 billion in 2012. US consumer spending is also expected to outperform the global rate (15.5 percent vs. 13.4 percent) rising to approximately $33.7 billion. Advertiser spend on mobile media is projected to more than double in 2012, increasing 128.9 percent to just under $4.2 billion.

US consumers are expected to spend $6.7 billion on mobile apps in 2012, a 24.6 percent increase over 2011, and accounting for 20 percent of all US consumers mobile spend.  In direct correlation to this, US advertising revenue on mobile apps is projected to reach $1.2 billion in 2012, a 118 percent increase over 2011. Again, the strength of the apps ecosystem in the US is evidenced by the fact that in-app advertising revenue is more than double the revenue from mobile Web display advertising in 2012, which is only projected to reach $556 million.

124.9 million Americans are expected to access social networks via their handset in 2012, yet the amount of revenue this will generate for social networks is only expected to reach $412.7 million or $3.48 per mobile user during the year.
 

Press release contact

David MacQueen
Phone number: +44 1908 423623
Email: Contact me
© 2014 Strategy Analytics