Mobile to claim 15pc of online ad spend
Gothenburg, Sweden, December 21, 2011
The total value of the global mobile marketing market in five years will correspond to 15.2 per cent of the total online advertising market or 3.8 per cent of the total global ad spend for all media, said a report.
This will correspond to a growth in the total value of the global mobile marketing from 2.6 billion euros ($3.4 billion) in 2010 at a compound annual growth rate (CAGR) of 37 percent to 17.2 billion euros in 2016, added the new research report from the analyst firm Berg Insight.
As the digital convergence blurs the differences between devices the definition used for mobile advertising is that it is the digital media exposed on a mobile handset screen.
The report predicts that a major boom in mobile advertising is on its way after having remained on an experimental stage for several years.
“The popularity of smartphones and the increasing availability of mobile media that can include mobile advertising are the main game changers,” said Rickard Andersson, telecom analyst, Berg Insight.
A common strategy is to increasingly integrate mobile components in traditional media campaigns, he said.
“Brands are now progressively embracing the mobile channel, including the entire range of apps from games and entertainment to utility applications. Also mobile web advertising and opt-in SMS campaigns are popular,” added Andersson.
He said that advertisers are also keen on exploring opportunities with location-based advertising (LBA) making marketing messages hyper-relevant both in time and place.
The mobile marketing value chain is still developing and there are a large number of players dedicated to different activities related to mobile advertising. Since the value chain is fragmented and the industry has not yet reached maturity, many different roles are involved.
Traditional digital players and major mobile OS providers such as Google, Microsoft, Apple and Yahoo! are in fierce competition over market shares in the mobile advertising space. Facebook is furthermore on the verge of establishing its presence in mobile advertising, and may very well become an important player if leveraging user data for targeted mobile campaigns.
There is further a wide range of specialised mobile actors. Examples include the ad network Millennial Media, the ad exchange Smaato and the operator-centric advertising solution provider Amobee.
Many acquisitions have recently taken place within the mobile marketing industry and further consolidation is expected to bring about an ecosystem consisting of a few dominant digital advertising networks spanning all types of devices. – TradeArabia News Service
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