Technology | Media | Telecommunications

Wednesday, October 30, 2013

Global Mobile Advertising Spend will Reach $39B

The growing penetration of smartphones and tablets, and their user's increasing dependency upon these devices -- which are continually generating data about their location, activities and preferences -- means that
the mobile device channel has become a highly valuable proposition to all marketers.

Juniper Research has found that increased utilization of analytics platforms, allied to the introduction of innovative ad formats and purchasing mechanisms, will push global mobile advertising spend beyond $39 billion in 2018 -- that's up from $13 billion this year.

Findings from their latest global market study highlighted the opportunities offered by targeted in-app advertising, citing the dramatic success of monetizing native applications over the past year.

Mobile now contributes 41 percent to Facebook's overall advertising revenue. Facebook recently announced that it is going to begin rolling out video ads -- a move illustrative of the wider industry trend for interactive rich media ads, away from under-performing mobile banner adverts.

Furthermore, Juniper observed that the growth of Real-Time Bidding (RTB) -- an approach which lets advertisers buy impressions in real-time -- means that publishers will be able to more easily sell their advertising inventory, which will thereby boost overall mobile ad spend.


The Downside to Mobile Advertising

However the Juniper study also pointed out that some brands still remain wary of the mobile channel due to concerns that mobile advertisements may be perceived as inappropriate or intrusive.

Indeed, Juniper noted the disproportionately low spend on mobile advertising, versus other mediums, relative to the high engagement levels that frequently occur.

"We are witnessing a change in consumer perceptions of mobile advertising as advertisers begin to use opt-in, or reward-style advertising; by harnessing big data and location information, mobile ads are being better targeted to users." said Sian Rowlands, research analyst at Juniper Research.

That said, the perception regarding the effectiveness of all advertising can't be disputed. There are other more effective and proven ways -- such as creative content marketing -- to reach people via a mobile device.

Other key findings from the study include:
  • The fastest growing region, in terms of mobile ad spend, will be the Indian Subcontinent. Spend here will increase four times from 2013 to 2018.
  • Advertisers can increase conversions by simply adding mobile optimized features, for instance a ‘click to call’ button, or by linking to the correct app store.