Both advertisers and publishers plan to add mobile application support for the Android platform in 2011,according to a new report from Millennial Media.

More than Half of Marketers Will Add Android Apps

When asked what platforms advertisers/marketers will add support for in the coming year, 55% of advertisers participating in “State of the Apps Industry 2010” said they will add support for the rapidly growing Android platform in 2011. Another 45% will add support for the also quickly growing iPad platform.

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In addition, Windows Phone 7 appears ready to supplant RIM and iPhone in emphasis.

Android May Overtake iPhone among Publishers

Android, which a leading 14% of mobile application publishers will add support for in 2011, appears in pole position to challenge iPhone (4% will add support in 2011) for the overall top spot of platforms for which publishers create applications.

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In addition, Windows Phone 7 is tied for second place with iPad as the platform that will be added to most publishers’ plates in the coming year.

Mobile App Budgets Cannibalize Less

Mobile application budgets in 2010 moved away from cannibalizing online budgets. Budgets designated specifically for app development grew 21% year-over-year, comprising 23% of the overall mix compared to 19% in 2009.

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In addition, although promotional budgets only fund 11% of mobile application budgets, this percentage slightly more than doubled from 5% in 2009. Significantly fewer online budgets fund mobile applications this year (42%) than last year (57%, which declined about 26% year-over-year).

1 in 3 Publishers Expects to Double Mobile App Revenue

Publishers anticipate significant growth in their applications revenue in 2011. When asked to estimate their earnings during the coming year, a full 31% expect their apps revenue to increase 100% or more in 2011.

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Another 17% expect an increase of 50% or more. Only 10% of respondents expect their revenues to remain flat.

More Advertisers Expect 7-Figure Mobile App Budgets

When comparing actual mobile applications budgets in 2010 and projected apps budgets in 2011, a small but growing portion of advertisers project that apps spending will exceed $5 million in 2011. The percentage of advertisers expecting budgets to
increase in the $1-5 million range also increased year-over-year.

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Although these seven-figure spenders make up just less than 10% of the overall group, Millennial Media says the increase in million-dollar budgets highlights the growing importance of mobile apps within advertisers’ plans. A significant increase is also expected in the $101K-$200K range, pulling primarily from the $50K-$100K and less than $50K ranges.

Major Increase in Advertisers Developing 20-50 Apps

When asked the number of mobile applications they developed in 2010 compared to 2009, advertisers participating in “State of the Apps Industry 2010” stated growth in every area. In particular, advertisers developing 20-50 apps stated an astounding jump 1,975% jump from four in 2009 to 83 in 2010.

About the Data: Two surveys were used to provide the data used in this report. The State of the Apps Industry survey pools used by DIGIDAY consisted of approximately 600 digital and/or mobile industry professionals in two industry snapshots taken in November 2009 (Q4 2009) and August 2010 (Q3 2010).

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