In-app advertising revenues to reach $2 billion in U.S. in 2013, says Parks

Thursday, April 25, 2013

Parks Associates predicts that ad-supported apps will account for 88% of all apps downloaded in the U.S. by 2016, accounting for 26% of all app revenues. “U.S. revenues for the smartphone and tablet in-app advertising market will reach nearly $2 billion this year,” says Heather Way, Senior Research Analyst at the research company. “Younger consumers, including Millennials, are more inclined to engage in second-screen search, discovery and social activities, and their recall and response rates for in-app ads are higher than other consumer segments.”

“This topic could not be more relevant to the burgeoning connected home conversation,” declares Michael Hudes, EVP, YuMe, whose company is discussing revenue strategies and consumer app usage (along with adRise, NAGRA, Rovi and Samsung) at the Parks Associates-organized CONNECTIONS event in Las Vegas, May 20-23 (co-located with CTIA). “We are seeing a steady push for multiscreen video advertising supported by consumer interaction across all devices,” he observes.

A recent Parks Associates study reveals that 69% of U.S. broadband households watched video on a computer during the month before they were asked, and the figures were 18% for tablets and 29% for mobile phones.

According to Thomas Ahn Hicks, Head of Business Development & Strategy at adRise: “We are seeing tremendous demand from both brand advertisers and premium content distributors for content on connected TV devices. Advertisers are seeking interactive, targetable video ads while content distributors are realizing the high ROI that they can only get from interactive video ads on the living-room TV.”

From the article, "In-app advertising revenues to reach $2 billion in U.S. in 2013, says Parks."

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