Global Media Market to Soar in 2012 with Emphasis on Apps
With everyone from elementary school students to President Obama glued to their smartphones, it stands to reason that ad spending in the mobile market is on a steep trajectory. Analysts who track the industry report that the global consumer market for all things mobile now exceeds $100 billion. As a result, marketers will be pumping up their ad spending to connect with the hyper-connected consumer.
In 2012, the consumer share of this market will be valued at $138.2 billion. For the most part, consumers are buying data plans – about $82.8 billion this year. And, there are apps to consider. As apps increasingly become the way for enterprises and marketers to distribute content, downloads will increase this year. Look for about 32 billion downloads, say the folks at Strategy Analytics. Consumers will spend $26.1 billion on apps in 2012 – an increase of 30.7% over last year. Overall consumer spending on mobile media and data plans will jump 13.4% this year.
The U.S. is a big part of this story. Mobile app spending, domestically, will reach $6.7 billion this year. And, U.S. advertisers are chasing this market. For the most part, advertisers are also turning to apps to spread their message. The Strategy Analytics numbers show that marketers will spend $1.2 billion on in-app ads. The comparable number for mobile display ads will be about $556 million.
Changes will come quickly to the mobile ad market. Currently, mobile video ads only account for a small percentage of revenue in comparison to the number of people watching mobile video. And social networking contributes 11.8% to mobile media revenue. These numbers are likely to change because consumers are spending a significant amount of time using this content via their mobile devices. In any case, it seems clear that both users and advertisers are drawn to the app format more than the mobile web when they use their smartphones and tablets.[Source: Global Mobile Media Revenues To Touch $150 billion in 2012. Strategyanalytics.com. 20 Apr. 2012. Web. 28 Apr. 2012]