Mobile Content Providers to Rely More on Ad Support

If consumers are going to continue turning to their mobile devices for information and entertainment, marketers will find a way to be there as well. eMarketer analysts regularly study the emerging mobile market. While these analysts see the growth rate leveling off for ad-​supported mobile content revenue models, they also predict that the ad dollar volume will rise impressively through 2015.

Between 2010 and 2011, marketers invested an increased $127 million in mobile advertising, bringing total spending to $284.1 million and marking an 81.9% jump. This year, ad-​supported mobile content revenue is predicted to reach $433.8 million which is a 52.7% increase. Projections are slightly less heady but still exciting for the next several years (Predicted annual growth rates appear in parens):

  • 2013 $621 million (43.1%)
  • 2014 $814.5 million (31.2%)
  • 2015 $1.074 billion (31.9%)

Content providers are rushing to roll out applications in the music, video and gaming sectors. eMarketer analysts say that about 80% of this content was paid for last year while 20% was ad supported. In addition, the paid content market was worth $1.16 billion in 2011. But, as more consumers begin to use mobile devices, analysts expect a shift. Less content will be paid for –about 70% — which leaves the remaining 30% to be ad-​supported by 2015. At that point, the value of paid content on mobile devices will reach $3.59 billion.

This trend means big opportunity for advertisers who want to reach consumers on the run, especially those who don’t favor paying for the information and entertainment they want to access.

[Source: Ad Support Increases Role in Mobile Content. Emarketer​.com. 11 Jan. 2012. Web. 23 Jan. 2012] 
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.