The total value of the global mobile marketing and advertising market will grow from €3.8bn (£3.1bn) in 2011 to €19.7bn in 2017, at a compound annual growth rate (CAGR) of 31 per cent. This will then correspond to 15.5 per cent of the total online advertising market, or 4.4 per cent of the total global ad spend for all media, according to research form the analyst, Berg Insight. As the digital convergence blurs the differences between devices, the definition used for mobile advertising is that it comprises the digital ads exposed on a mobile handset screen.
“Consumers are currently devoting a quarter of their media consumption time on mobile devices, yet the channel only attracts slightly more than 1 per cent of the ad dollars”, said Rickard Andersson, telecom analyst at Berg Insight. “While the transition of advertising expenditure from traditional media to digital channels has not kept up with the changes in consumer behaviour, the direction of the development is clear.
“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.” Andersson adds that advertisers today are keen on exploring opportunities with real-time bidding, enabling automation in the ad buying process.
There’s more information about Berg Insight’s Mobile Advertising and Marketing report here.