Mobile Devices to Boost Online Ad Spending in 2012: Berg

By Nathan Eddy  |  Posted 2011-12-21 Email Print this article Print
 
 
 
 
 
 
 

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The mobile marketing value chain is still developing, and a number of players are dedicated to different activities.

The total value of the global mobile marketing and advertising market will grow from $3.4 billion in 2010, at a compound annual growth rate of 37 percent, to $22.6 billion in 2016, according to a research report from the analyst firm Berg Insight. This will then correspond to 15.2 percent of the total online advertising market, or 3.8 percent of the total global ad spend for all media.

As the digital convergence blurs the differences between devices, the company noted that the definition used for mobile advertising is that it is the digital media exposed on a mobile handset screen.

The Berg Insight report also predicts that a major boom in mobile advertising is on its way after having remained in the experimental stage for several years. "The popularity of smartphones and the increasing availability of mobile media that can include mobile advertising are the main game-changers," said Rickard Andersson, telecom analyst at Berg Insight.

"Brands are now progressively embracing the mobile channel, including the entire range of apps, from games and entertainment to utility applications. Also, mobile Web advertising and opt-in SMS [Short Message Service] campaigns are popular," he said. Andersson added that advertisers are also keen on exploring opportunities with location-based advertising (LBA) making marketing messages hyper-relevant both in time and place. A common strategy is to increasingly integrate mobile components in traditional media campaigns, Andersson said.

The report noted the mobile marketing value chain is still developing, and there are a large number of players dedicated to different activities related to mobile advertising, and since the value chain is fragmented and the industry has not yet reached maturity, many different roles are involved. Traditional digital players and major mobile OS providers, such as Google, Microsoft, Apple and Yahoo, are in fierce competition over market share in the mobile advertising space.

Facebook is furthermore on the verge of establishing its presence in mobile advertising, and may very well become an important player in leveraging user data for targeted mobile campaigns. There is further a wide range of specialized mobile actors, with examples including the ad network Millennial Media, the ad exchange Smaato and the operator-centric advertising solution provider Amobee. "Many acquisitions have recently taken place within the mobile marketing industry, and further consolidation is expected to bring about an ecosystem consisting of a few dominant digital advertising networks spanning all types of devices," the report said.

 


 
 
 
 
 
 
 
 
 
























 
 
 
 
 
 

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