US Mobile Media Revenue Growth to Outpace 17% Global Average

April 23, 2012

strategy-analytics-mobile-media-market-growth-2011-to-2012-april2012.jpgGlobal mobile media revenues are projected to reach almost $150 billion this year, representing a 17% rise from $128 billion in 2011, says Strategy Analytics in an April 2012 report. Advertising revenue will grow faster than consumer spend (85.4% vs. 13.4%), meaning that advertiser spend will account for more than 7.7% of global mobile media revenues, up from 4.9% in 2011. Consumer spend will make up the lion’s share of the roughly $22 billion in increased revenues, though, growing $16.4 billion from $121.8 to $138.2 billion, while advertiser spend will almost double from $6.3 billion to $11.6 billion.

US to Outpace Global Average

Data from Strategy Analytic’s “Global Mobile Media Forecast” indicates that consumer spend on mobile media in the US will grow 15.5% year-over-year, 14% faster than the 13.4% global average. US advertiser spending growth will outpace the global average by an even greater amount, forecast to grow 128.9%, 51% more than the 85.4% global average.

The forecast for US advertising revenue growth could even be seen as slightly conservative, at least when compared to the recently-released IAB and PricewaterhouseCoopers (PwC) report, which found that mobile advertising revenues in the US jumped 149% in 2011.

Overall, according to Strategy Analytics’ forecast, total US mobile media revenues will grow 22.1% this year, compared to the 17% global average.

Mobile Operators to Benefit; Apps to Blossom

strategyanalytics-global-mobile-media-revenues-april2012.jpgRoughly 60% of global consumers’ spending will be on data plans and web browsing this year, handing mobile operators revenues of $82.8 billion, up 9.5% from 2011. Applications are expected to account for 18.9% of global consumer spend, or $26.1 billion, rising 30.7% from last year. Meanwhile, although revenues will remain relatively flat, music will continue to be a strong category, accounting for 11.6% of consumer spend, or $16 billion. By contrast, video will account for just 2% of consumer spend globally.

Mobile App Revenues to Grow Quickly in the US

US consumers are projected to spend $6.7 billion on mobile apps this year, representing a 24.6% increase from 2011, and accounting for 20% of all US consumer mobile spend. Advertising revenue on mobile apps is expected to reach $1.2 billion, marking a 118% increase.

Other Findings:

  • Revenue related to social networking content, apps, and services on mobiles is projected to grow 16.1% to $17.6 billion, holding 11.8% share of global mobile media revenues.
  • Consumer access to social networks via their handset will only generate $412.7 million in revenues for social networks in the US this year, or $3.48 per mobile user.
  • Mobile media revenue growth among the major Western European markets is expected to outperform the global average, at 20.3%. Advertising revenue will increase 107.4%, while consumer spend will rise 14.1%.
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