Advertising spend on mobile messaging will reach a total $7.4bn (£4.7bn) by 2017, according to a report from Juniper Research.
This growth will be driven by a surge in use of location-based SMS, Juniper says. Location-based SMS campaigns, such as those offered by O2 Media, have the potential to deliver tightly relevant ads with the benefits of SMS, including low cost and high open rates.
“Sending adverts using mobile messaging gives advertisers a simple, cheap and effective way of reaching consumers,” says report author Charlotte Miller. “Adding location technologies is an even more powerful proposition, particularly for transactional advertising as marketers can reach consumers who are near a location where they can purchase. Knowing that the recipients of an ad have actively asked to receive it, and will in all likelihood open it, is also particularly attractive.” 
The Messaging, In-App and Mobile Internet Strategies 2012-2017 report is available from Junipers website here, with an accompanying whitepaper, Mobile Ads for Mobile Apps, available for free here.
