US mobile advertising revenues, with

forecasts to 2015
Coda Research Consultancy

Coda. Coda Research Consultancy

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 Coda. Coda Research Consultancy

US mobile advertising revenues, with

forecasts to 2015

Steve Smith PhD

Research Director

Coda Research Consultancy

Released 27 May 2010

For more information about this product, please email steve.smith@codarc.co.uk, or call
+44 (0)7779 610004

European office:
Coda Research Consultancy Ltd
95 Wodeland Avenue
Guildford
Surrey
GU2 4LD
England

© Coda Research Consultancy Ltd, 2010

All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any
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and Patents Act 1988 or the Copyright and Rights in Databases Regulations 1999.

This report draws upon research and analysis conducted by Coda Research Consultancy. Use of this report by any third party for whatever
purpose should not, and does not, absolve such third party from using due diligence in verifying the report’s contents. Any use which a third party
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this document. Coda Research Consultancy does not make investment recommendations, in this report or otherwise, and nothing in this report
should be interpreted as an opinion by Coda Research Consultancy either on market forecasts or on the prospects of specific companies.

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Introduction

Document at a glance:
Type – US market forecast and assessment report, to 2015
Printed page length – 29
Number of forecasts – 10
Number of other figures – 10

We forecast that mobile internet users via handsets in the US will rise to 158m in 2015, and
smartphone owners will rise to 194m in the same year. In view of this, prospects for revenues from
mobile advertising are considerable, and we predict they will increase by a compound annual growth
rate of +37% across the forecast period to 2015.

This 29 page report examines mobile advertising via handsets in the US to 2015, and is divided into
two sections. The first section provides analysis and forecasts for ad revenues across SMS, Display
and Search. The second section is given over to an analysis of the following drivers to mobile
advertising:

 Smartphone subscribers (with forecast to 2015)

 3G subscribers (with forecast to 2015)
 Mobile internet users (with forecast to 2015)
 Applications (including in app advertising)
 Location based services and advertising
 Mobile coupons and payments
 Social networking
 Video (including in video advertising)

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Contents and Figures
Contents
Companies mentioned in this report ......................5
Methodology...........................................................6
Mobile advertising ..................................................7
Why advertising on mobile handsets will thrive.......... 7
Mobile ads served in the US: Feb 2009 to Feb 2010... 8
Top devices served with mobile ads in the US: Feb
2010 ................................................................. 8
Display ad overview ................................................. 9
SMS ad overview ..................................................... 9
Search ad overview.................................................. 9
Revenue forecasts to 2015 ......................................10
SMS advertising revenues ................................11
Search advertising revenues.............................11
Display ad revenues.........................................11
Drivers to mobile ad revenues..............................12
Smartphones ..........................................................12
Smartphone subscriber forecast to 2015 ...........12
3G+ mobile handset subscriber forecast to 2015 ......13
4G roll out..............................................................14
4G roll out across carriers ................................14
Mobile internet usage..............................................16
Mobile internet user forecast to 2015................17
Mobile internet user split: smartphones vs feature
phones forecast to 2015.............................17
Mobile internet users via smartphones forecast to
2015 .........................................................18
Mobile applications .................................................18
Mobile search applications................................18
A look at Apple iAds.........................................18
Location based services...........................................19
Google’s location based advertising patent ........21
Mobile coupons ......................................................21
Mobile payments ....................................................21
Video .....................................................................22
Advertising via video........................................22
Mobile video user forecast to 2015 ...................24
Social networking ...................................................24
Use of mobile handsets for social networking ....24
Social networking user forecast to 2015 ............25
Social networking behavior across mobile handsets
................................................................25
Recommendation and word of mouth marketing26
Advertising ......................................................26
Bibliography .........................................................28
About Coda Research Consultancy .......................29
Forecasts
Forecast 1. Mobile advertising revenues, 2009-2015 ..... 10
Forecast 2. Ad revenues: SMS vs Display vs Search,
2009-2015 ......................................................... 10
Forecast 3. Ad revenues: SMS, Display and Search
ads share........................................................... 11
Forecast 4. Smartphone subscribers, 2009-2015........... 13
Forecast 5. Smartphone subscribers as share of all
mobile handset subscribers, 2009-2015 ............... 13
Forecast 6. 3G+ mobile handset subscribers, 2009-
2015 ................................................................. 14
Forecast 7. Mobile internet users via mobile handsets,
2009-2015 ......................................................... 17
Forecast 8. Mobile internet users via smartphones,
2009-2015 ......................................................... 18
Forecast 9. Mobile internet video users, 2009-2015 ...... 24
Forecast 10. People accessing social networking.
Smartphones vs feature phones, 2009-2015 ........ 25
Other Figures
Figure 1. Mobile ads served in the US, Feb 2009 to
Feb 2010 ............................................................. 8
Figure 2. Top devices served with mobile ads in the
US: Feb 2010....................................................... 8
Figure 3. Typical throughout speeds, comparing 3G
with LTE ............................................................ 14
Figure 4. Sprint WiMax coverage map by city ............... 15
Figure 5. Mobile internet user split: smartphone users
vs feature phone users ....................................... 17
Figure 6. Location based usage among smartphone
owners, by smartphone brand............................. 20
Figure 7. Examples of interactive advertising................ 23
Figure 8. Social networking users accessing Facebook,
MySpace and Twitter, 2009 vs 2010 .................... 25
Figure 9. US online advertising spend via Facebook
and MySpace 2009 vs 2010 ................................ 26
Figure 10. Top ten Facebook applications by Monthly
Active Users....................................................... 27
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Companies mentioned in this report

ABC.com, 23 Morgan Stanley, 28

ABI, 28 Motorola, 8
Admob, 21 MySpace, 24, 25, 26
AdMob, 8, 19, 28 Nielsen, 16, 28
Apple, 8, 18, 19, 20, 21, 25, 26, 27 Palm, 20, 26
AT&T, 16 PayPal, 22
CFI Group, 20 Pew Research, 24
Clearwire, 15 Priceline.com, 22
Compete, 11, 19, 21, 26, 28 Quattro Wireless, 21
comScore, 16, 20, 24, 25, 28 RIM, 19, 20, 26
Distimo, 28 Samsung, 8
eMarketer, 26, 28 Sprint, 15
Facebook, 22, 24, 25, 26, 27 Starbucks, 21
Fandango, 22 Target, 21
Federal Communications Commission, 16, 28 T-Mobile, 16
Federal Trade Commission, 19 Trinity Mobile, 22, 28
Foursquare, 20 Twitter, 24, 25, 26
Gartner, 19, 21, 28 Verizon, 15, 16
Google, 19, 20, 21, 25, 26, 28 Yellow Pages, 20
HTC, 8 YouTube, 24
MobileCoupons.com, 21 Yowza!, 21

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About Coda Research Consultancy

Coda Research Consultancy specializes in providing critical insight into market developments and
behavior around new media, technologies and services in order to help IT and media professionals,
business executives, and investors make fact-based decisions around strategy, service provision and
product development.

Coda employs a variety of rigorous quantitative and qualitative research procedures. It draws upon a
range of disciplines, and collaborates with top commercial and academic organizations.

Coda Research Consultancy is led by Dr Steve Smith, an internationally acknowledged research

specialist with extensive experience consulting for media and technology companies globally.

To find out more, visit www.codarc.co.uk, or contact us below:

European office
95 Wodeland Avenue
Guildford
Surrey
GU2 4LD
England
Tel: +44(0)7779 610004
Email: steve.smith@codarc.co.uk

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