The strong growth in mobile advertising expenditure enjoyed by mobile publishers is set to slow significantly over the next five-years according to a report from Strategy Analytics.
After growing over 6-fold between 2013 and 2018 growth in mobile advertising revenue will fall to a 12 per cent CAGR and the market value will reach $222 Billion in 2023. The mobile share of digital advertising will grow rapidly in less developed advertising markets but in advanced markets the share over mobile is reaching a plateau. Strategy Analytics expects mobile advertising to continue to suffer from headwinds including increased cautiousness following Facebook’s Cambridge Analytica scandal and the implementation of GDPR in 2018.
Key highlights of the Global Mobile Advertising Forecast – 2010-2023 report include:
Brice Longnos, Analyst Wireless Media, and report author, commented: “Growth of mobile advertising in developed markets, where the largest brands and advertisers can be found, is slowing down as mobile competes with other screens for eyeballs, such as connected televisions. Meanwhile, in emerging mobile-first markets, mobile phones may be the primary screen for content consumption but ad budgets are lower. Therefore, the contribution to global mobile ad spend from those markets will be marginal.”
Furthermore, the progression of programmatic in display and video advertising will make ad spend more cost-efficient, increasing impressions and engagement per dollar spent. These three factors explain why we see mobile advertising expenditures slowing from 2018 onwards.
Nitesh Patel, Director Wireless Media, added: “With mobile accounting a dominant share of revenues for leading social networks Facebook, Snapchat and Twitter in Europe, the restrictions imposed on customer data collection will be particularly felt as advertisers and publishers figure out the best approach for delivering targeted advertising while complying with regulation. In the long run, we expect advertisers to benefit as consumers giving consent will be more receptive and engaged with ad experiences.”
Copyright Advanced Television Ltd © 2001–2020
Maintained by Elrond Limited