Mobile Marketing Revenues to Top £400m in 2010, says mobileSQUARED

Total UK revenues for mobile content and services, mobile advertising and marketing, will be £407.1m in 2010, rising to £1.1bn in 2015, according to a new report from mobile research firm, mobileSQUARED.

The Mobile Market Trends, UK: Usage and Revenue Forecasts to 2015 report finds that revenue growth will primarily be driven by increased mobile advertising spend, especially around conversational advertising. The mobile advertising market is forecast to grow from £50.25m in 2010 – 12 per cent of total revenues, to £357.84m in 2015 – 33 per cent of total revenues, as advertisers increasingly target the mobile channel.

At the same time, content and services revenues will grow from £336.73m this year, 83 per cent of total revenues, to £703.53m in 2015 – 64 per cent of the total, with monetary growth coming from increased spend on mobile apps, mobile gambling and mobile games.

“The apps market is exploding and revenues over the forecast period are forecast to grow 350 per cent from £28.29m to £130.21m, excluding games downloads,” says Gavin Patterson, chief markets analyst at mobileSQUARED, and author of the report. Patterson says that the apps market will contribute 9 per cent of total content and services revenue this year, and 19 per cent by 2015, a CAGR of 28.5 per cent.

Overall, mobileSQUARED estimates there will be 81.04m mobile subscriptions in the UK by the end of 2010, increasing 6 per cent to 85.97m by the end of 2015. Total subscriptions to 3G services and above will rise 62.2 per cent over the period, from 31.59m to 51.2m, while users of more basic talk and text packages will fall almost 30 per cent from 49.45m to 34.73m.

Mobile Market Trends, UK: Usage and Revenue Forecasts to 2015 is the first in a series of reports from mobileSQUARED focusing on the leading mobile markets. It forecasts a total of 19.97m mobile internet users by the end of this year, representing 25 per cent of the total mobile population, and 63 per cent of 3G subs. Mobile internet users will rise to 37.72m by 2015, representing 44 per cent of total subs and 74 per cent of 3G subs.

“Smartphone users will increase 106 per cent over the period from almost 20m to more than 50m, primarily driven by sales of Android devices and other smartphone operating systems,” says Patterson. “This year is definitely something of a spike in UK sales for the iPhone, and growth will fall away moving forward, as more Android devices enter the market, and Nokia gets its act together in the smartphone market as well.”

Mobile Market Trends, UK: Usage and Revenue Forecasts to 2015, is available now from mobileSQUARED. You can see the full table of contents and forecasts here.