Mobile Ad Spend Set To Boom

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Mobile Ad Spend Set To Boom

By: Mike Sachoff
2009-08-28

Growing consumer adoption of mobile Internet services and increased brand engagement with mobile services will lead to a sharp increase in spending on mobile Internet advertising, according to a new report from Juniper Research.

According to the report, ad spend on the mobile Internet will reach $500 million globally in 2009, increasing to nearly $2 billion annually by 2014.

In many markets where fixed Internet access is limited, mobile has already become the main way of accessing the Internet. In India, mobile accounted for nearly 90 percent of all that country's Internet users in 2008. Operator transition from a walled garden environment to a more open model has led to mobile Internet usage surging worldwide. This has also led to an ever-increasing proportion of ad-funded and sponsored searches on mobile handsets.

In addition, mobile's ability to offer instant measurement and accurate response rates is making it an increasingly attractive option for brands looking to demonstrate their levels of campaign engagement with consumers.

"Popular mobile Internet sites are now attracting levels of usage that provide a strong case for advertising and sponsorship options," said Dr. Windsor Holden, principal analyst with Juniper Research and author of the report.

Furthermore, the fact that mobiles are far more personal than home computers - used only by a specific individual - means that brands can build up detailed profiles of user responses and plan follow up campaigns accordingly."

Additional finding from the report include:

Mobile Internet will account for the largest proportion of total mobile ad spend for the first time in 2009, overtaking SMS advertising

The total value of ad spend on mobile is expected to rise from just over $1.4bn in 2009 to $6bn in 2014

Despite the increasing popularity of mobile advertising, most campaigns are ad hoc and there are very few converged campaigns

About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.


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