Mobile adspend set for growth

26 November 2009

GOTHENBURG: Mobile advertising and marketing expenditure will grow by more than 40% annually over the five years to 2014, when it will take an 11.7% share of global digital revenues, a new forecast says.

Berg Insight has estimated that mobile adspend reached around €1 billion ($1.5bn; £903m) in 2008, and is set to enjoy a compound annual growth rate of 43% over the next half-decade, to €8.7bn.

Marcus Persson, a telecoms analyst at the research firm, said "advertisers are increasingly aware of the opportunities and seek new ways to exploit them."

"Just the simple fact that people are able to make a phone call or send a text message anywhere at any time has changed the conditions for marketing in general." While mobile display has not entered the mainstream marketing mix at present, the rise of smartphones should lead to an uptick in activity in this area, he added.

Similarly, the convergence between wireless devices and PCs will encourage consolidation among ad networks, which should ultimately come to cover both of these mediums.

Google's recent purchase of AdMob may be one example of this growing trend, but the search giant is likely to face significant competition going forward.

This will come both from its traditional rivals like Microsoft and Yahoo, and from telecoms specialists like Nokia and Apple, according to Berg Insight's analysis.

Data sourced from Cellular News; additional content by Warc staff