Mobile ad spending keeps growing thanks to high consumer mobile use

By December 24, 2012 Drop a comment
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Growth in mobile ad spending will continue as consumers spend more time on their mobile devices. In 2017, mobile ad spending should account for 4% of the total global ad spending.

 

So far, mobile ad spend has not kept up with the growth in actual consumer engagement in this channel, and represents only 1% of the global ad spending. But this sets up mobile to be a source of growth, as was described by a research report from analyst firm Berg Insight. According to the latter, mobile should account for 4.4 percent of total global ad spend across all media as early as 2017. The global mobile marketing and advertising market will grow from $5 billion in 2011 to $26 billion in 2017. Mobile will then make up 15.5 percent of the total online advertising market.

The gap between spending and usage will stimulate spending growth

This predicted growth reflects the gap between usage levels and how much brands spend on mobile ads. “Consumers are currently devoting a quarter of their media consumption time on mobile devices, yet the channel only attracts slightly more than 1 percent of the ad dollars”, said Rickard Andersson, Telecom Analyst, Berg Insight. Since this part of the industry is still nascent, there is much room for innovations to be integrated into marketing campaigns. “The unique targeting possibilities and new creative ad units suitable for mobile devices will spur mobile ad spend to increase several fold in the medium-term”, said Mr. Andersson. Options that increase efficiency and ROI such as real-time bidding also appeal to advertisers.

The mature market of Asia-Pacific still spends more than high-growth North America

This bullish outlook on the mobile ad market is being supported from other analysts. Back in August of this year, eMarketer estimated that global mobile ad spending would reach $6.43 billion in 2012 and that the US would “surpass Asia-Pacific in 2013 as the world’s largest regional market for mobile advertising” with a projected $2.29 billion. In second place is the previous largest mobile ad spender, Japan, a much more mature mobile ad market at $1.74 billion. Japan’s mobile ad spending growth rate was 27.2 percent this year, the US’ rate was 96.6 percent. Currently, the Asia-Pacific region is the largest spending region, followed by North America, and is far larger than Europe.

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