Skip to main content

U.S. Brands Spend $1.23 Billion on Mobile Ads in 2011

 
I'm not who you think I am. Yes, I write about the very latest mobile device technology and the growth of mobile internet usage. But I don't use my mobile phone to send text messages or to access the internet -- it's just for making and receiving voice calls.

Truly, I've yet to find the one application that convinces me that I "personally" really need a smartphone. Very soon, that scenario will make me part of a rapidly shrinking segment within the American consumer population.

By the end of this year, eMarketer estimates that 38 percent of U.S. mobile users will have a smartphone and 41 percent will use the mobile internet at least once each month. According to their latest assessment, that adoption translates into an increase in the opportunity for mobile advertising -- and more ad spending.

Frankly, if there's anything that's sure to dissuade me from joining the ranks of smartphone users, it's the thought of being subjected to the unimaginative advertising that's produced for most U.S. brands. I gave up watching broadcast TV because I simply couldn't tolerate the advertising. But I digress...

eMarketer forecasts that advertisers will spend nearly $1.23 billion on mobile advertising this year in the U.S. -- that's up from $743 million last year and set to reach almost $4.4 billion by 2015. This growth includes spending on display ads (such as banners, rich media and video), search and messaging-based advertising, and counts all ads viewed on mobile phones and media tablets.

This year, messaging-based ad formats still take the largest piece of the advertising spend, accounting for $442.6 million.

But in 2012, banners and rich media will be even with search -- each getting 33 percent of spending, or $594.8 million. That will put them both ahead of messaging, which will fall to just 28.2 percent of all mobile ad spending next year.

By 2015, banners and rich media and search will truly dominate, and messaging will have shrunk to 14.4 percent of the total -- though still growing in terms of revenue. Apparently, video is the fastest-growing mobile advertising format, but from the smallest base.

Mobile video ad spending, at $57.6 million this year, will grow at a compound annual rate of 69 percent between 2010 and 2015 -- to reach $395.6 million.

Popular posts from this blog

GenAI: A New Era in Business Transformation

The advent of artificial intelligence (AI) has ushered in a new frontier of innovation, with Generative AI (GenAI) at the forefront. At the brink of this revolution, it's crucial to understand the current GenAI adoption and its implications for commerce worldwide. A recent poll conducted by Gartner provides valuable insights into this emerging trend and the potential upside opportunities. Generative AI Market Development The poll, which included 1,419 executive leaders, indicates a significant shift in the corporate world's perception and adoption of GenAI. The data reveals that 45 percent of respondents are currently piloting GenAI, while another 10 percent have put it into production. This is a substantial increase from a similar poll conducted in March and April 2023, where only 15 percent were piloting and 4 percent were in production. GenAI is no longer a mere buzzword; it has become a strategic focus for organizations worldwide. As Frances Karamouzis, VP Analyst at Gartne
Read more

GenAI Revolution: The Future of B2B Sales Apps

When B2B buyers consider a purchase they spend just 17 percent of that time meeting with vendors. When they are comparing multiple suppliers‚ time spent with any one salesperson is 5 or 6 percent. Self-directed B2B buyer online research has already changed procurement. IT vendors are less likely to be involved in solution assessment. Now, more disruptive changes are on the horizon. By 2028, 60 percent of B2B seller work will be executed through conversational user interfaces via Generative Artificial Intelligence sales technologies -- that's up from less than 5 percent in 2023, according to Gartner. Generative AI Market Development "Sales operations leaders and their technology teams must prepare for the convergence of new forms of artificial intelligence, dynamic process automation, and reinvented deal-planning activities that will transform the sales function," said Adnan Zijadic, director analyst at Gartner . According to the Gartner assessment, Generative AI (GenAI) s
Read more

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -
Read more