Tag: mobile marketing growth

Spending on ads targeting smartphone and tablet users almost doubled last year but still represents a sliver of the total.

Last year in Canada, mobile marketing spending on ads increased at an explosive rate, nearly doubling what it had been the year before, and yet it is still considered to be only a tiny fraction of the overall digital ad marketplace.

That said, if the growth continues at this rate, it won’t take long for this channel to carve a much larger slice.

This mobile marketing data is according to a report that was released by the Interactive Advertising Bureau of Canada. The report indicated that the smartphone ad revenue in 2012 came to $160 million. This was an increase of 97 percent over what it was in 2011. At the same time, revenues from online ads increased by 13 percent, bringing them to $2.9 billion. That still managed to beat the forecasts that had been established by IAB Canada.

This year, both online and mobile marketing ad revenues are expected to rise, but more moderately.

The digital ad revenues for 2013 are predicted to increase by 9 percent by the close of the year, reaching a total of $3.36 billion. This includes the 50 percent rise that is expected for ads over mobile marketing, which will come to an anticipated $240 million. These forecasts were created based on the advertising budgets that survey respondents provided to IAB Canada. These respondents included ad networks and exchanges, on top of online publishers. Those budgets reflected the first half of the year’s data.

The dollar figures have revealed that while mobile marketing does still have a great deal of potential as a channel over which to advertise, marketers are still only in the earliest stages of figuring out how they will be using the channel to reach their customers over these widespread and yet still quite new devices.

This also reflects a challenge that publishers face in being able to sell adequate advertising over smartphones and tablets in order to be able to recoup sizeable investments into the creation and establishment of their mobile marketing campaigns and smartphone based presence.

Mobile media is growing more important to consumers

Mobile media is becoming more important to consumers on a seemingly daily basis. Mobile video, websites, games, and social media services have become integral parts of a society that is becoming more reliant on technology. New analysis from Strategy Analytics suggests that mobile media will reach a new milestone in the near future. The growing popularity of mobile games, mobile commerce, and entertainment applications will contribute greatly to the growth of mobile media.

Firm predicts growth of global mobile media sector

According to the firm’s analysis, spending on consumer mobile media will reach $200 billion worldwide by 2017. The growing number of media-centric mobile devices will contribute to this growth as well as the more flexible data pricing plans coming from telecommunications companies. Various forms of mobile media will also contribute to this growth, with entertainment mediums likely to see the majority of consumer spending.

Smartphone and tablet penetration will power growth

The mobile sector will see some major challenges in the future, according to the analysis, as companies begin bringing mobile-centric services to markets where smartphones and tablets have not yet become popular. In these markets, feature phones are the dominating force, and these mobile devices have limited access to media of any kind. The challenge that companies will face in these markets is encouraging consumers to embrace smartphones and tablets, but many people may not be inclined to do so because of the cost of such devices and the cost of the data plans they are associated with.

New mobile marketing opportunities to emerge in future

The firm predicts that mobile advertising will become more important as mobile media itself grows. New advertising opportunities are expected to emerge as more consumers embrace mobile technology. The first estimates that mobile advertising will account for 18% of total media expenditure by 2017, reaching $42 billion. This growth is expected to continue into the future, especially as more consumers become involved in mobile technology.