Flurry hails aggressive growth of US mobile app advertising inventory | Brands | Mobile Entertainment

Flurry hails aggressive growth of US mobile app advertising inventory

Flurry hails aggressive growth of US mobile app advertising inventory
Stuart Dredge

by

Brands / Advertising / September 1st 2011 at 10:45AM

Claims that it could 'eat Internet display ad spend' should be taken with a pinch of salt though.

Mobile analytics firm Flurry has trumpeted the growth in available inventory for advertising within mobile apps, although its comparison to US internet display advertising raises a few concerns.

"US app inventory is not only growing at a staggering rate, but also poised to absorb the equivalent of the entire US Internet display advertising spend by the end of this year," blogs Flurry. "In approximately two years, mobile app inventory is growing so aggressively that it could easily meet the demand of a mature, 15-year-old form of online advertising."

Keep that 'could' in mind.

Flurry's calculations are based on its data showing that the average number of ads shown in an app session is 4.3, with that session lasting 4.2 minutes on average - compared to an average session length of just under one minute for websites. Flurry then took eMarketer's figures for US online display advertising - $12 billion a year - and assumed a "conservative CPM" of $2.50 for mobile app inventory.

"For mobile apps, less than four years into their growth cycle, a critical mass of highly attractive consumers has been achieved. With growing awareness by brands and advertising agencies, we now expect digital advertising on mobile to take off in earnest."

Here's the concern: aggressively growing inventory is only a good thing if it is filled at decent prices. One argument might be that the more inventory there is, the more CPM may be driven down to below that $2.50 mark.