Ad supported models will be the key driver for mobile music, according to research released recently by eMarketer. In fact, by 2016, ad supported revenues will make up 86% of that marketplace. In fact, that figure is already at 69%, with the remaining revenue share coming from subscriptions or download fees.
In fact, Pandora leads the way in mobile display ad revenue share, eMarketer predicts that their share of the mobile display marketplace will be 20.5% in 2012, besting the likes of Google, Twitter and Facebook.
Mobile ad revenues remain a small portion of the advertising pie with a 1% share overall, but eMarketer predicts that marketplace will grow 102% over the next year. As companies like Twitter and Facebook shift their attention to better monetization of mobile impressions that number will continue to grow.
Pandora’s role as the lead driver in development of the mobile display ad and mobile music marketplace is good news for the industry overall. As they say, “all boats rise” and as Pandora raises awareness and brings ad investment into the mobile music space they will be creating opportunities for other streaming mobile music services to share in that revenue…