Mobile Devices to Boost Online Ad Spending in 2012: Berg

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 […]

Written By: Nathan Eddy
Dec 21, 2011
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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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