Mobile Ad Market Garnering More Respect
With smartphone penetration expected to exceed 50% sometime next year, consumers may be spending more time using mobile online resources. Marketers are closing watching the numbers and many have begun to experiment with mobile ad campaigns. Ad spending in this format reached $416 million in 2009 according to eMarketer. But what about future spend rates? Research shops have issued significantly different projections for this format, going forward to 2014.
eMarketer recently tried to make sense of the numbers. Noah Elkin, eMarketer principal analyst and author of the new report “Mobile Advertising and Marketing: Past the Tipping Point” says the fortunes of the mobile market have been clouded until recently because industry heavyweights like investment bankers remained uncertain about the mobile ad space development. This year, both Google and Apple moved definitively to indicate their commitment to investing in mobile devices and the related ad market.
eMarketer’s research indicates that mobile ad spending will reach $743.1 million this year and grow to $2.5 billion by 2014. These projections are in the middle range of where most researchers see this market going. For example, Borrell Associates has come in at the high end with projections for mobile ad spending. The company says spending in this sector reached $1.7 billion last year and will grow to $33.9 billion in 2014. Yankee Group, on the other hand, is looking for the mobile ad market to reach $242 million this year and believes total spending in 2014 will be $748 million.
As ad space and technology providers continue to enhance platforms for mobile advertising, marketers will likely spend more on media rich campaigns like video. The messaging market will probably drop as businesses begin to use mobile advertising to build brands. It’s easy to see that mobile ad revenue will grow over the next 4 years. It’s not so easy to project growth rates for this emerging media format with any sense of accuracy.[Source: Industry Trends Spur Big Mobile Ad Spending. 25 Oct. 2010. Web. 5 Nov. 2010]