US mobile adspend rises

06 October 2011

NEW YORK: Mobile adspend in the US will rise by 65% year on year to hit $1.23bn in 2011, according to a new forecast.

eMarketer, the research firm, also said in a new data release that it expects spend on the channel to reach $4.4bn in 2015, up from $740m in 2010.

This trend reflects a continued increase in smartphone sales and use of the mobile web among consumers.

Within the adspend total, the company forecasts a shift away from SMS-based ads and towards display ads over the next few years. Search is predicted to maintain its share.

In 2011, messaging-based and search spots will account for mobile adspend shares of 36% and 29% respectively, according to the eMarketer forecasts.

Display - including banners, rich media and video - will account for the remaining 35%.

By 2015, the market share held by messaging is forecast to fall to 14%, while that of display ads will increase to 45%.

Elsewhere, eMarketer also forecast that 41% of US mobile users will be using the mobile web at least once a month by the end of 2011. Meanwhile, smartphone ownership is to reach 38%.

In July, financial services provider JP Morgan forecast that US mobile adspend will reach $1.2bn in 2011, up from $600m in 2010.

A report from Nielsen, released last month, identified increased takeup of social media platforms such as Facebook and Twitter as a major driver of the mobile web's popularity.

In all, 37% of US consumers with social media profiles accessed the sites via the mobile web. This is an increase of 62% from the previous year.

Data sourced from eMarketer; additional content by Warc staff