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Explosive App Universe Shifts Ad Spend from Mobile Sites to Mobile Apps

As apps become a main distribution method for media on mobile phones, a new report shows ad dollars shifting from mobile sites to popular mobile apps themselves. Other newly released industry data reveals that tablets will continue to grow in popularity over the next several years; yielding massive app downloads – approximately 13.7 billion by 2016. Read on for more details on the latest mobile industry research and more…

According to a new Strategy Analytics report highlighted by Reuters, in-app spending by U.S. advertisers is expected to overtake spending on display ads on mobile websites in 2012."Advertisers chase eyeballs, so the fact that brands spend more on in-app advertising than the mobile Web is a clear sign that apps are what consumers are glued to for an increasing range of activities," said David MacQueen, the firm's director of wireless media strategies.

A new market research study by ABI Research found that iPad and Android media tablet users will remain avid app users in the next five years, averaging more than 31 downloads per year, per media tablet. According to the study, 11 of the 13.7 billion app downloads forecasted for 2016 will be focused on four categories: games, digital publishing, social networking and e-commerce.  “The magic of media tablets for seniors and children is the touch-screen interface. It’s so intuitive,” said Mark Beccue, an ABI senior analyst. “The demographic groups will rely heavily on downloaded apps over Web surfing on their media tablets.”

And as the shift to mobile continues, Microsoft, the once-ruler of the PC market, is having a hard time keeping up. Despite its partnership with Nokia and continued efforts to break into the smartphone space, ReadWriteWeb reports that U.S. mobile customers are getting rid of Microsoft devices faster than they are buying new ones. According to comScore, Microsoft only holds 3.9 percent of smartphone market share, far behind Google (50.1 percent) and Apple (30.2 percent).  

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