By 2018, Mobile Ad Spend to Reach $40 Billion – Juniper Research

mobile-adsAccording to a recent report by Juniper Research, increased utilisation 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% 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.

The report found 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.

According to the report, the fastest growing region, in terms of mobile ad spend, will be the Indian Subcontinent with the mobile spend expected to increase four times from 2013 to 2018. The report also found that 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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70% of worldwide mobile ad revenues dominated by Google and Facebook

Mobile Advertising

Google and Facebook will combine to control close to 70 percent of worldwide mobile ad revenue share in 2013, eMarketer reports.

The overall mobile ad market is expected to grow 89 percent to $16.65 billion worldwide this year, eMarketer forecasts. Google is on pace to claim 53.17 percent of the market, up from 52.36 percent a year ago, thanks largely to continued growth in mobile search traffic and the expansion of its YouTube monetization efforts. Facebook is expected to surge from 5.35 percent global mobile ad share in 2012 to 15.8 percent this year: Last month, the social network announced that mobile ads now generate 41 percent of its total revenues, up from 30 percent in the first quarter of this year.

Pandora Media follows a distant third at 2.37 percent, declining from 2.71 percent in 2012 and 2.99 percent in 2011. Last week Pandora reported second quarter mobile ad revenues of $90 million, more than half of the streaming music service’s total quarterly revenues. will capture 2.27 percent of the global mobile ad market in 2013, slipping from 2.86 a year ago, while Twitter will grow from 1.57 percent in 2012 to 1.85 percent this year. Millennial Media  is next at 0.72 percent, falling from 0.82 percent in 2012. Other firms make up the remaining 23.82 percent of the market.

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54% of Global Users Discover Mobile Ads Via Apps – InMobi

mobile-adsAccording to the Mobile Media Consumption Report by mobile advertising network InMobi, mobile media is turning into the a core platform through which consumers’ access the Internet and engage with brands online. The findings are based on a study of over 15,000 mobile users in 14 markets across all continents through InMobi’s global mobile ad network, and research partners Decision Fuel and OnDevice Research.

Commenting on the insights, Naveen Tewari , CEO and co-founder at InMobi, said,”Mobile devices now permeate every aspect of modern life. The study reveals that mobile users are always-on, whether surfing the mobile web while spending time with family (48%), at a social event (45%), commuting (60%) and shopping (43%). This creates a huge opportunity for brands and marketers to engage with consumers throughout the day unlike traditional advertising like print and TV.”

So how’s mobile advertising influencing consumers’ purchase decisions? According to the report, 75% of the respondents admitted they’d been introduced to something new via their mobile device. While 46% of respondents agreed to making purchases using their mobile device, 45% said it has influenced their in-store purchases.

The report revealed that mobile apps can offer brands remarkable opportunities to engage with consumers on a more personal level all across the globe. The findings reveal the accelerated usage of mobile apps and found that the average consumer actively uses 6.5 apps throughout a 30-day period.

Around 54% of the respondents reported that they had noticed ads while engaged in an app. About 80% of respondents were influenced by a mobile ad to download an app and 67% went on to visit a brand’s website immediately afterwards. Mobile advertising is not only helping to drive app downloads but also increase website traffic.

The InMobi research also found that 59% of mobile users are now as comfortable with mobile advertising as they are with TV or online advertising. Consumers prefer to buy & sell classifieds online and on mobile too. Whilst mobile ads in apps are the most noticed among mobile users, the study highlighted that different formats of mobile ads appeal to different segments of consumers. Globally, 54% of users discover mobile ads via apps, 40% on a search engine, 27% on a retailer website and 23% on a video website.

According to the report, m-commerce continues to evolve and consumer adoption is high with 66% of consumers surveyed having spent money on an activity via a mobile device. This is expected to increase significantly as 80% of consumers plan to conduct mobile commerce in the next 12 months.

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Worldwide Mobile Advertising Revenues To Reach $24.5 Billion In 2016

mobile-adsAccording to a recent report by Gartner, worldwide mobile advertising revenues are expected to reach $11.4 billion in 2013, up from $9.6 billion in 2012. Worldwide revenue is expected to grow to $24.5 billion in 2016 with mobile advertising revenue creating new opportunities for app developers, ad networks, mobile platform providers, specialty agencies and even communications service providers in certain regions.

As per the report, smartphones and media tablets extend the addressable market for mobile advertising in more and more geographies as an increasing population of users spends an increasing share of its time with these devices. Andrew Frank, research vice president at Gartner said,”This market will therefore become easier to segment and target, driving the growth of mobile advertising spend for brands and advertisers. Mobile advertising should be integrated into advertisers’ overall marketing campaigns in order to connect with their audience in very specific, actionable ways through their smartphones and/or tablets.”

The report revealed that geographical regions will also evolve at a different pace and in different directions. It forcasted that the high-growth economies of China and India are expected to contribute increasingly to mobile advertising growth, as their expanding middle classes present attractive markets for global and local brands.

According to the report, different types of mobile advertising are evolving at a different pace and in different directions. Mobile search — including paid positioning on maps and various forms of augmented reality, all of which can be informed by location — will contribute to drive mobile ad spending across the forecast period, although it will diminish in strength as the period progresses. According to Gartner, mobile display ad spending will grow and take over from mobile search. It will initially remain divided between in-app and mobile Web (in-browser) placements — reflecting consumer usage — although after several years of in-app dominance, Web display spending will take over in-app display from 2015.

The rapidly growing share of time that consumers spend on mobile devices is generating ad inventory at a pace considerably faster than most advertisers can shift their spending to the medium. This creates a surplus condition that is driving down unit ad prices which in turn has led to a situation in which a significant portion of mobile ad inventory is taken up by app developers paying for ads to promote their apps and get them more downloads, a category known as “paid discovery.”

The report also reveals that while the revenue basis of paid-for app store downloads provides some economic justification for this category, for many developers the outlay for ads is close to their maximum ad income or even exceeds it.

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By 2013, Mobile Ad spend to reach Rs 250 crores

A joint report by MMA (Mobile Marketing Association) and exchange4media on mobile advertising spend for India, reveals that by 2013, the mobile advertising market will grow to Rs 250 crore (US$50 million). The  size of the current spend is Rs 180 crore (US$33 million).

The report revealed that mobile advertising accounts for about 10 per cent of the overall digital advertising spends in India. The MMA believes that there are more than 12 crore (120 million) mobile internet users in India. However, many advertisers are not exploring the medium at all bringing the overall digital spends in India at five to seven per cent of the overall advertising pie in India, which is pegged at Rs 27,000 crore to Rs 28,000 crore (US$5 billion toUS$5.1billion), according industry estimates. The report is based on extensive research conducted by exchange4media and inputs from brands, agencies and the mobile ecosystem in India in September 2012.

Rohit Dadwal, Managing Director, MMA, Asia Pacific said, “Mobile is an exciting, fast-growing category, but it’s still a very small piece of the overall ad pie. Mobile advertising is growing at a fast pace and will soon challenge other channels. Growth of ad spends, and the constant evolution of mobile, will make it a stand-alone medium that will act as a connecting tissue for traditional media which is what we have discovered while doing our research in the Indian market on mobile advertising.We are already seeing digital spends exceed traditional in markets like Australia. This is a sign of how the market will evolve.”

According to the report, display, search and SMS (measured and opt-in) are the key drivers contributing to mobile advertising spends in India, and will help drive the growth of the medium and ad spends to Rs 250 crore (US$50 million) in 2013. The report further elaborates how for many large advertisers, digital still is 10 per cent to 25 per cent of their overall ad budgets in India.

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Total Ad Spend on Mobile Web Search to reach $12 billion by 2017

A recent report by Juniper Research, reveals that, the total ad spend on mobile web search will reach $12 billion per annum in five years’ time, three times the ad spend this year, which will reach $4 billion. Usage of web search on mobile devices will be driven by continued adoption of high-usage tablets, with the number of these devices in-use reaching 672 million by 2017.

One of the factors promoting high-usage of tablets is the size. Typically either 7-inch or circa 10-inch – makes performing search queries a more comfortable experience, while the fact that these devices are used more in the home or at work for longer periods also means that users will make more queries per session. For these reasons, the report found that tablet users on average make around three times as many queries as smartphone owners, and ten times the number made by users of other handsets.

The report found that, brands advertising in the mobile web search space, needed to  ensure that their websites are optimised for mobile clicks. According to the report, ad spend is wasted if poor user experience ultimately prevent consumers from going on to make a purchase. Amazon and Marks & Spencer are among the few brands that have optimized their websites for mobile clicks and are reaping the benefits.

The other key findings of the report are:

  • Mobile Search & Discovery Market to Generate $15bn by 2017, Driven by High-Value Clicks.
  • Augmented reality search is increasingly being deployed as an add-on feature, rather than a stand-alone product.
  • Adoption of discovery services for apps is driven by the high number of applications on leading storefronts, but faces challenge from big brands (with Apple acquiring Chomp, and Facebook launching app center).


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Mobile Consumption of professionally produced video content grew to one bn in Q2 2012

According to latest data from Freewheel, the mobile consumption of professionally produced video content grew to one billion in Q2 2012, doubling since Q1 2012. Some of the key findings of the FreeWheel Video Monetization Report are:

  • The market for video advertising is expanding at a faster rate than the viewing of content. The volume of videos viewed increased 10% YoY while volume of  video ads increased 68% in the same time period.
  • Video loads for long-form content went up from an average of 6 video ads in Q1 2012 to an average of 8 in Q2 2012. During the same period, though mid-form content ad loads also saw nominal increases, the short-form content ad loads held steady.
  • Video ad completion rates for all content lengths increased since Q1 2012. While the long-form content completion rate went up to 91% in Q2 2012, the mid-form and short-form content saw completion rates of 80% and 69% respectively.
  • Mid-roll and post-roll ad formats grew at a faster rate than pre-roll ad format. This correlates to the increased number of advertising pods in long- and mid-form content, as well as higher video ad loads per pod, since these content lengths permit more advertising slots.

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InMobi to bring mobile ads on Cricbuzz

InMobi has partnered with Cricbuzz to provide mobile ads to consumers on Cricbuzz’s mobile site and applications for the Indian market. Through this partnership,  advertisers will be able to reach premium mobile consumers on Cricbuzz.

Under this exclusive partnership, InMobi  will have exclusive rights to monetize Cricbuzz’s mobile properties across all devices on phones and tablets in India. Now advertisers will have to engage InMobi in order to advertise on Cricbuzz’s mobile application on these platforms.

Cricbuzz, founded in 2004, is a leading cricket property with over 17 million monthly unique users on its web and mobile properties.This partnership is for all ad monetization, and on all their properties – mobile web and apps on phones and tablets.

Commenting on this partnership, Sandeep Deshpande, Country GM – India at InMobi said, “This exclusive agreement with Cricbuzz reinforces InMobi’s leadership position in the Indian market. Cricbuzz’s mobile properties on all platforms have been immensely popular in India and abroad. We believe in their strong product capabilities and their vision for building the best cricket destination in the world. In a Cricket fanatic country like ours, where all brands want a share of this pie, advertisers will now be able to reach their target audience wherever they are, through this partnership.”

Bangalore based InMobi, the world’s largest independent mobile ad network, provides end-to-end solution for mobile advertising including rich media ad creation, distribution, tracking and optimization. It delivers the unprecedented ability to reach 578 million consumers, in over 165 countries, through more than 93.5 billion mobile ad impressions monthly.

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Global Mobile Advertising market reached the $5.3 billion mark in 2011

A recent report by IAB ( Interactive Advertising Bureau ) shows that the global mobile advertising market reached the $5.3 billion mark in 2011 and is expected to grow even bigger in 2012. If you look at a region wise break up of this figure, Europe accounts for 25.9% ; North America 31.4%; Latin America 3.5%; Asia-Pacific 35.9%; Middle East & Africa 3.2%.Compared to the 2010 market figures, there’s been a 150% increase in the year 2011.

A more detailed breakup is given in the figure below:

“Hyper-personal and always-on, mobile has a tremendous potential as an advertising medium,” Alain Heureux, President and CEO of IAB Europe said. ” We are recognizing the need for accurate and comprehensive data to support and provide evidence for its future growth. This is not just a local, or even European affair. As many mobile campaigns are played out in a global ecosystem, the market we have to size spans across borders.”

Anna Bager, Vice President and General Manager, Mobile Marketing Center of Excellence, IAB said,“As mobile accelerates its global footprint, it is vital that we measure the worldwide and regional opportunities for advertisers. This key IAB initiative provides an accurate gauge of mobile market developments across the globe, with the aim of helping our members and the industry achieve even stronger growth through mobile.”

The IAB Mobile Marketing Center of Excellence, an independently funded and staffed unit inside the IAB, is charged with driving the growth of the mobile marketing, advertising and media marketplace.

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Latest Indian Mobile Advertising Revenue Statistics March 2012

According to a recent report published jointly by IAMAI & IMRB, mobile advertising revenues in India will reach the 144 crores mark by 2013. Currently the market is valued at 105 crores. Mobile Ad shares which accounted for about 90 crores of the total Indian digital advertising industry in March 2011 have grown by 17 percent , approximately 105 crores in March 2012.

The largest share of Mobile advertising, approximately 75 percent of the total digital advertising spend, is earned through Mobile WAP / browser based ads. This is followed by In –App advertising and SMS revenues.


Source: IAMAI

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