Skip to main content

Major Boom Forecast for Mobile Device Advertising

In 2010, nearly $2 billion was spent by marketers on mobile advertising. In 2012, according to the latest market study by ABI Research, that figure will be more than $7 billion.

And by 2016, their forecasts suggest that as much marketing budget -- approximately $24 billion -- will be spent on mobile advertising as is currently spent on all online advertising put together.

"ABI Research forecast clearly indicate a major boom in mobile advertising is on the way," says practice director Neil Strother.

All the pieces are falling into place: the technology, the behavior and the funding (advertiser spending) is following.

Today mobile marketing spend is still relatively tiny, by online standards -- often just 2 or 3 percent of a marketer's overall advertising budget -- but spending on mobile ads will accelerate and grow.

What has changed? Mobile marketing is truly considered promising, but the pool of potential viewers and readers has been relatively small -- especially for display ads, interactive ads, and ads using rich media.

But two related developments have changed that.

The first is the explosion in use of mobile smartphones and other smart devices such as media tablets. The second is the proliferation of mobile applications that can include or drive mobile advertising consumption.

These applications can be related to a wide variety of activities including media content and games, but also services accessed through the mobile web browser.

The result, says Strother, is that "The population of people who access content or media or services that are ad-supported is now big enough to create a critical mass."

This story has concentrated on the higher end of mobile advertising; lower-tech forms such as text message-based advertising are still viable and useful, but content publishing sites will charge more for display, interactive or rich media ads.

Popular posts from this blog

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe