Mobile Ad Spending Booms

As more consumers use their mobile phones for everything from talking to texting, marketers sense the need to get their messages onto these devices. The Internet Advertising Bureau, earlier this year, projected a 2010 spending level of $593 million for mobile media with total spending in 2013 to reach $1.450 billion.

Several other research concerns predict rapid growth in ad expenditures on the mobile format. These forecasts are based on consumers’ rapidly growing use of mobile devices to access the Internet. For example, over 1 in 4 (28%) of mobile subscribers accesses the Internet via mobile devices every day.

To date, marketers have primarily used SMS messaging to reach mobile users but search and display are being used as well. By 2013, The Kelsey Group sees the components of mobile advertising breaking out as follows:

  • Messaging 9%
  • Search 73%
  • Display 18%

Last week, ABI Research released the results of its most recent poll on this topic. For display ads only, ABI expects to see spending reach $1.2 billion by 2015. The company’s  “research interviews with advertising agency executives, technology vendors and mobile ad network operators, who … have been seeing year-​over-​year increases of 25% to 30% in campaign spending,” says ABI Research practice director Neil Strother, led it to issue its most promising forecast yet for the industry.

Projections from research shops vary widely when it comes to  mobile advertising for the next 4 years, but they all have one thing in common. Things are looking up.

[Sources: Kouba, Chris. Borrell: Local Mobile Ads to Double This Year. NetNewsCheck​.com. 13 Apr. 2010. Web. 26 Apr. 2010; Change is in the Air for Mobile Advertising. IAB​.net. October 2009. Web. 15 Jul. 2010; US Spending on Mobile Display Ads Will Nearly Quadruple over the Next Five Years, ABI Research. 7 Jul. 2010. Web. 16 Jul. 2010] 
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.