Mobile Advertising To Account For 4.4 Per Cent Of Total Global Ad Spend In 2017

mobile-adsA recent report by Berg Insight reveals that the total value of the global mobile marketing and advertising market will grow from € 3.8 billion in 2011 at a compound annual growth rate (CAGR) of 31 percent to € 19.7 billion in 2017. This will then correspond to 15.5 percent of the total online advertising market or 4.4 percent of the total global ad spend for all media.

According to the report, the mobile advertising expenditure will increase rapidly, which resonates well with the continuously increasing share of time people spend on the mobile channel at the expense of traditional media.

Rickard Andersson, Telecom Analyst, Berg Insight, said,”The unique targeting possibilities and new creative ad units suitable for mobile devices will spur mobile ad spend to increase severalfold in the medium-term.” He also added that advertisers today are keen on exploring opportunities with real-time bidding enabling automation in the ad buying process.

The report further revealed that, the mobile marketing value chain is still developing with a large number of players dedicated to different activities related to mobile advertising. Since the value chain is fragmented and the industry has not yet reached maturity, many different roles are involved.

At present, major mobile OS providers like Google and Apple already hold major market shares offering their AdMob and iAd platforms. Microsoft and Yahoo! are also in fierce competition over market shares in the mobile advertising space. Facebook has moreover made a first inroad into the mobile ad market and may surface as an important player if combining advanced user targeting with innovative mobile ad formats. There is further a wide range of specialised mobile actors. Examples include the major independent ad networks Millennial Media and InMobi, the ad exchange Smaato and the operator-centric advertising solution provider Amobee which is now part of Singtel. The mobile advertising industry continues to demonstrate a high level of acquisition activity and further consolidation is expected to bring about an ecosystem consisting of a few dominant digital advertising networks spanning all types of devices.

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