Mobile Advertising Crunch Hits App Developers

Mobile app developers that rely on highly targeted ad campaigns to bring in new business are facing rising rates and inventory shortages as they compete to reach a small group of desirable, free-spending customers.

Companies including SGN, Groupon and Big Fish Games all say the supply of desirable mobile advertising options can run too thin. The squeeze is driving up prices, and is one of the reasons that Facebook and Twitter are each exploring the creation of advertising networks that could target people outside of the social networks themselves.