Mobile advertising revenue is set to leap from last year’s global figure of $9.6 billion to $11.4 billion this year, new research from Gartner predicts.
Mobile advertising agencies did better than the global research company predicted in November last year, a fact which has caused it to revise its forecast for mobile phones advertising revenue upwards. The increased uptake of mobile gadgets lies behind the 19 per cent surge in revenues, the research reveals.
The global mobile market is expanding
Gartner’s research vice president, Andrew Frank, explained that the addressable market for mobile advertising has expanded into more parts of the world as increasing numbers of new users spend more and more of their time on smartphones and tablets. He added:
“This market will therefore become easier to segment and target, driving the growth of mobile advertising spend for brands and advertisers. Mobile advertising should be integrated into advertisers’ overall marketing campaigns in order to connect with their audience in very specific, actionable ways through their smartphones and tablets.”
The research also indicates that “360-degree advertising campaigns” will help North America and Western Europe to catch up with (and maybe overtake?) the Asia Pacific market. These campaigns follow users across the full range of their devices, whatever platform they happen to be hooked into at any one time.
A bright future for mobile advertising
Things look even better longer term, with Gartner predicting a 400 per cent growth in mobile advertising by 2016, taking the total to $24.5 billion. As economies in Africa, the Middle East, Eastern Europe and Latin America stabilize, mobile technology will be increasingly adopted, expanding the mobile advertising market still further.
In fact, mobile advertising is on course to overtake mobile search, the Gartner study argues, although to begin with it’s likely to be split between in-app and mobile browser advertising placement. During 2015, web-based display spending is expected to overtake that for in-app display.
And new developments are afoot – less intrusive ways of serving adverts are in the pipeline, which are more engaging to users, not least by offering reward schemes. App developers could also start distributing free, ad-supported apps, while agencies might pay for location-based services on web browsers. These are very likely to appeal to users and make an impact on business marketing campaigns, the report anticipates.