Google Inc. over the long haul is in a better than Apple position to simplify the mobile media buying process and bring more scale to mobile advertising, according to eMarketer.

The key finding of the eMarketer report was that mobile advertising has finally earned a seat at the marketing table in terms of dollars spent and brand strategy. United States mobile advertising spending will reach $743 million this year and top $1 billion in 2011, per eMarketer.

?As consumers spend more time on mobile and more use smartphones and mobile becomes an essential part of daily activities, more marketers need to pay closer attention to mobile advertising,? said Noah Elkin, senior analyst at eMarketer, New York.

?IAd may not be right for every business, but there are different types of mobile advertising that people can do,? he said. ?Mobile touches virtually every point of the purchase funnel and somewhere within it, there is an opportunity for every brand to engage consumers with mobile advertising.

?One other thing is the impact of Apple and Google making such large investments in mobile. Google over the long haul is really in a better position to simplify the media buying process and bring more scale to mobile advertising. If Google over time could do in mobile advertising what it did with PC search, the implications are significant.?

Google and Apple drive mobile ads
Google?s acquisition of mobile ad network AdMob and Apple?s launch of iAd are important drivers for eMarketer?s upward revision for mobile display advertising spending.

The research firm now says total mobile display spending, including video, will reach $230.8 million in 2010.

The previous forecast projected the mobile display market would reach $166 million this year.

It is safe to say that many marketers who had not previously considered mobile advertising are now anxious to tap into its potential thanks to the stamp of legitimacy applied to the medium by the high-profile entrance of companies such as Apple and Google.

?If Apple is the spark to mobile advertising, the combined Google/AdMob has the best chance of being the flame,? Mr. Elkin said. ?iAd is the latest bright, shiny object in mobile advertising, but Google is better positioned to simplify the media-buying process and bring scale over the long term to mobile advertising.

?The bottom line is: Whether or not Apple itself ends up being good at mobile advertising, iAd has been good for mobile advertising,? he said.

Other findings
EMarketer estimates spending on mobile advertising will grow 79 percent this year to $743.1 million, up from $416 million in 2009.

SMS messaging is still the largest format in the mobile ad market?with spending expected to reach $327 million this year.

However, spending on both mobile search and display ads is expected to soon surpass messaging thanks to the introduction of rich-media formats, increased smartphone penetration and lucrative new ad networks.

Although small in comparison to the online advertising market, mobile is expected to grow substantially over the next few years.

By 2014, eMarketer estimates advertisers will spend $2.55 billion on mobile advertisements as companies like Google and Apple bring scale to the industry.

?I think there are a couple of implications for brands,? Mr. Elkin said. ?It is increasingly clear that brands need mobile to stay relevant.

?People are spending time on mobile, more than on TV or PCs,? he said. ?For brands that want to travel with their customers, in the right place on the right platform, mobile needs to part of the mix.

?With the richer ad units, the focus of mobile advertising is shifting to the top of the purchase funnel."

Final take
Giselle Tsirulnik is senior editor of Mobile Marketer
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