Space available for advertising in mobile applications will exceed advertising space sold online

It concludes a recent analysis of Flurry for North American market.Flurry report monitored the traffic of over 100,000 applications formobile and took into account a $ 2.5 CPM applications.
Given the more than 600,000 applications available and the average duration of a session in an application for over four minutes(4 times higher than the average session for a web site) results in afulminant increase. That by the end of the year will surpass the U.S.online display market (discussing the hypothetical case of selling allthe available space in applications).
Below you can see the growth in question:

The main conclusion we can draw from this report is that prices foradvertising in applications will collapse further. In 2011 the U.S. market of online advertising (display) is around 12 billion, whileU.S. mobile advertising (which includes mobi sites, notapplications) is around one billion.
Therefore we already have an excess of unsold space in largeapplications - Apple has acknowledged the failure of mobileadvertising sales and come with discounts of 70% compared toprices in 2010.
Immense competition in the applications and production costsdown to an application are two factors that will lead to increasednumber of applications which will be distributed free of charge andwill hope for funding from advertising.
Moreover, this excess space will be sold increasingly performancecampaigns (CPC or CPA, preferably download), leading to a much lower CPM - in such campaigns have already seen nearly eighttimes CPM smaller (ie $ 0.33).
My recommendation is that advertising revenue recorded by amobile application to represent an additional source of funding andin any case the main source of money, especially to a newly launched application