Mobile Ad Outlook Revised Sharply Higher

The rising adoption of smartphones and tablets means more consumer attention will be focused on mobile platforms. And where consumer attention goes, marketing dollars are sure to follow. This line of thinking has resulted in ‘sharply higher’ projections being released by eMarketer for mobile marketing spending.

This year, mobile marketing is likely to reach $1.226 billion, a 79% increase over last year. eMarketer analysts say spending levels for the next few years will look like this for the mobile platform:

  •  2012 $1.802 (billion)
  • 2013 $2.523
  • 2014 $3.381
  • 2015 $4.396

Noah Elkin, principal analyst at eMarketer, says “A key factor pushing mobile advertising toward the mainstream is that mobile web access is fast becoming more the norm than the exception.” The recession may have slowed the conversion to mobile but we’re now in a world where the question is not ‘if’ but ‘when’ marketers will move to this platform.

In the mobile world, messaging had been dominant until this year because most consumers were still using feature phones. Next year, spending on messaging will be eclipsed by ad types that work well in the smartphone and tablets operating system environments.  Estimated spending by ad category for 2012 is as follows:

  •  Messaging $508.3 (million)
  • Banners/​rich media $594.8
  • Search $594.8
  • Video $104.5

As much as the ad industry discusses online video marketing, that format will be slow to make an impact on the mobile platform. Even by 2015, eMarketer analysts say that video will comprise 9% of total spending on mobile. The largest formats in the sector will be banners and rich media and search.

Other trends to expect in mobile include more commitment, more repeat buys and marketer strategies to “integrate mobile into their broader digital campaigns to engage consumers.”

[Source: Mobile Advertising Goes Mainsteam. Emarketer​.com. 31 Oct. 2011. Web. 10 Nov. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.