All who work assiduously in media jobs at U.S. mobile advertising agencies can only pray that developments in the UK will be replicated stateside. Across the pond, the mobile advertising market is poised to double in 2013, breaking even last year’s record growth high-point.
So says a new report from eMarketer, which forecasts that the UK’s 2012 peak of £526 million ($811.25 million) will virtually double this year to £1 billion ($1.54 billion). Mobile phones advertising in particular appears to have accelerated the growth – smartphones are used more widely in the UK than anywhere else in the world.
The growth has been phenomenal. Mobile advertising spend in the UK was estimated by the Internet Advertising Bureau to be a relatively meager £203 million ($313 million).
eMarketer’s VP of Communications, Clark Fredricksen, said, “On a broad level, British consumers are adapting to smartphones and tablets faster than expected. As more consumers spend more time on their phones and increase the amount of money they spend on phones and tablets, that audience becomes increasingly valuable to advertisers. Companies will invest in advertisements for mobile display formats as consumers spend more time on their phones, with mobile expected to overtake fixed internet by 2014, according to consultancy IDATE.”
He went on to observe that the entire advertising eco-system was evolving dramatically in response to changing consumer behavior, however some businesses haven’t caught up with the mobile explosion, with many retailers not yet even having built a strong mobile website.
Part of the explosive success of mobile advertising is undoubtedly down to technology Goliaths like Google, Facebook and Twitter, all of which have invested big-time in enhancing their mobile platforms.
Oli Roxburgh, MD of the Mobile 5 agency, said that more and more international brands were turning to mobile advertising agencies for mobile-specific creative, all of them attracted to the potential of unique mobile technologies like the use of touch, GPS, and accelerometers in mobile advertising campaigns.
eMarketer forecasts that general digital advertising spend will leap in the UK by 12 percent in 2013 to hit £6.1 billion ($9.4 billion) and then again to £7 billion ($10.8 billion) by 2015. Projections for 2017 suggest that the spend will hit £8 billion ($12.3 billion).
If trends like this take place stateside, we’ll be very happy.