Verizon iPhone To Boost Mobile Ad Market

Verizon Wireless's expected announcement Tuesday that it will begin selling the iPhone later this month should prove a boon for mobile ad networks and marketers. With Apple likely to sell an estimated 9 to 12 million iPhones on Verizon's network this year, that will only further expand the mobile audience on one of the top smartphone platforms.

That means millions more subscribers viewing or interacting with mobile ads via Apple's own iAd network and those of third-party mobile ad networks such as AdMob, Millennial Media and Greystripe -- both on the Web and within apps. Already some 70 million iPhones have been sold to date, including an estimated 14.5 million last year through AT&T, which until now has been the U.S. exclusive distributor of the iconic Apple device.

But with data from comScore last week showing that Android for the first time had surpassed the iPhone in market share -- 26% to 25% -- Apple needs the imminent partnership with the nation's largest wireless operator to reverse that trend in the U.S. One only has to consider how Android has benefited from having a presence on all four U.S. major carriers.

In addition to expanding the iPhone audience, the Verizon deal could also lead to higher usage levels through an unlimited data plan the carrier will offer with the device, according to a Wall Street Journal report. AT&T caps how much Internet data customers use each month. Verizon's version of the smartphone could encourage higher mobile media consumption, which should in theory translate into gains for mobile marketers and mobile ad companies.

Greystripe is already projecting it will run 1,200 campaigns on Apple's iOS platform through its Flash workaround technology -- up fourfold from 2010. The company, whose Lightning Technology competes with iAd, said Saturday its expects revenue from its Flash-converted ads to grow by 300% this year as brands move past experimental buys and make mobile a key part of their marketing strategies.

And while Android has come on strong in the last year, the iPhone and iOS are still driving forces for major ad networks such as Millennial Media, which last week announced raising $27.5 million in new venture financing.

The iPhone is still easily the single biggest device for Millennial, accounting for more than 14% of impressions, as of November. Among smartphone platforms, iOS and Android each drive about 40% of impressions on the network. More iPhones on the market will inevitably lead to more impressions.

The iPhone also continues to play an important role for archrival Google's AdMob network, where it provides some 60% of mobile ads. AdMob last week said it now receives more than 2 billion ad requests a day -- four times the total served last year. With the Verizon iPhone debuting in a matter of weeks, more ad requests are on the way.

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