Mobile advertisement spend to reach $US41.9 billion by 2017

January 21, 2014

A new research has revealed that mobile advertising spend is forecast to reach $US41.9 billion globally in the next three years with mobile display advertising formats comprising the bulk of revenue. According to the research, this year, the figure is expected to reach $US18 billion, up from an estimated $US13.1 billion last year. The Gartner report titled Forecast: Mobile Advertising, Worldwide, 2010-2017 found that advertisers are not requesting advertising space at the same rate as new platforms are becoming available. Gartner research director Stephanie Baghdassarian is quoted as saying that over the next few years, growth in mobile advertising spending will slow due to ad space inventory supply growing faster than demand, as the number of mobile websites and applications increases faster than brands request ad space on mobile device screens. Between 2014 and 2017, video advertising will show the highest growth, due to the increase in tablet use, which makes it easier to view videos.

Advertisements that tap into a user’s search or map location data will increase in popularity, as advertisers increasingly use this information to specifically target audiences to their interests and area. However, the report states that from 2015 to 2017, growth will be fuelled by improved market conditions, such as provider consolidation, measurement standardization and new targeting technologies, along with a sustained interest in the mobile medium from advertisers. Japan remains the most advanced for mobile advertising according to the report and this is because of the fast adoption of mobile handsets in the region, giving the area a kick-start on mobile advertising. China and India are forecast to contribute greatly to mobile advertising growth as they adopt more mobile technology in coming years while North America is expected to show great growth due to the scale of advertising budgets and the increasing shift to mobile use. The report also says that advertising budgets are the highest, so when a portion shifts to mobile, in a multiplatform approach, it immediately impacts the market’s scale. It forecast that from 2015, growth rates in Russia, Brazil and Mexico will exceed the worldwide average.

Contador Harrison