Mobile ad-spend $40bn a year by 2018

A report from Juniper Research has found that increased use of analytics platforms, allied to the introduction of innovative ad formats and purchasing mechanisms, will push global mobile ad spend beyond $39 billion in 2018, up from $13 billion this year.

The report highlighted the opportunities offered by targeted in-app advertising, citing the dramatic success of Facebook in monetising its native applications over the past year. Mobile now contributes 41 per cent to its overall advertising revenue. Facebook recently announced that it is going to begin rolling out video ads, a move illustrative of the wider industry trend for interactive rich media ads, away from underperforming mobile banner adverts.

Furthermore, the report observed that the growth of Real-Time Bidding (RTB), a mechanism which lets advertisers buy impressions in real-time, means that publishers will be able to more easily sell their advertising inventory, which will thereby boost overall mobile ad spend.

However the report also pointed out that some brands still remain wary of the mobile channel due to concerns that mobile advertisements may be perceived as inappropriate or intrusive. Indeed, the report noted the disproportionately low spend on mobile advertising, versus other mediums, relative to the high engagement levels that frequently occur.

Report author Sian Rowlands pointed out, however, that “we are witnessing a change in consumer perceptions of mobile advertising as advertisers begin to use opt-in, or reward-style advertising; by harnessing big data and location information, mobile ads are being better targeted to users.”

Key Findings from the Report Include:
–  The fastest growing region, in terms of mobile ad spend, will be the Indian Subcontinent. Spend here will increase four times from 2013 to 2018.
–  Advertisers can increase conversions by simply adding mobile optimised features, for instance a ‘click to call’ button, or by linking to the correct app store.

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