So let’s recap: A short while ago, investors worried that mobile advertising wouldn’t be very profitable. But now we’ve seen Google triple its mobile business in the last year, and we’ve seen Facebook go from zero to the number 2 in the world in only 6 months.
Now think about the next 10 years. We’re seeing a massive movement towards mobile computing. Mobile devices are location aware, so ads can be even more targeted than in the past. New advertising vehicles will be created to effectively monetize mobile traffic, driving more ad dollars to the segment. A study by IDC shows that the worldwide total advertising market was about $588-billion in 2010. That includes all types of advertising, not just Internet ads. So how much of that comes from mobile devices? According to a more recent 2011 study by research firm IAB, it’s less than 1 per cent.
There is a disconnect here, in my opinion. We’re becoming more and more addicted to our mobile devices. We spend a lot of time looking at or listening to media, reading articles and watching videos. I bet the percentage of eyeball time on mobile devices is significantly higher than 1 per cent. And I think it’s still increasing. This is bound to lead advertisers to the conclusion that more ad dollars should be invested in the mobile arena. This has to be good for the two biggest stocks in the business.
very simple and very good. this is why I am here. for the long term.... hope everybody is well I live on Long Island we got fucking hammered. myself and my family are fine no damage to our houses or cars but we have no power.