Flurry has just issues its 5 year report on mobile: Here are some snippets and highlights of interest for games.
To quote flurry: “There is an old saying in the world of advertising: “time-spent is the timeless currency”. It means that advertising revenue distribution follows time-spent distributions.”
As an example,
if an app commands 17% of time spent, it should command 17% of the ad revenues for that channel. This is exactly the position Facebook is in right now and this is reflected in the chart above.
There are other display networks, push marketing agencies, alternative stores, banners, native ads, video interstitials and other search monetization companies out there, these are depicted as “the rest of the apps, including gaming apps” in the image above. They dominate 65% of the time spent on Smartphones, and currently only receive 33% of the ad spend. So for 2013 the old advertising saying of time spent was not so accurate. This represents a massive opportunity for gaming apps, to monetize through advertising over the next few years.
Some are predicting that the mobile advertising market will grow 75% this year alone, making the opportunity even bigger. One thing is for sure, if you have a limited ad spend budget, running a campaign on Google and Facebook will give you 40% of the eyeballs. After that you need to consider targeting your audience, as that 65% “other apps” section is a busy and crowded place to be.