Mobile Ad Spend to Rapidly Increase22 Sep
“Mobile Advertising and Marketing: Change Is in the Air,” a new report from eMarketer, found that mobile advertising is expected to rapidly increase during the next five years.
Even though the number of mobile users and mobile devices is growing, mobile advertising and marketing dollars are falling behind. However, the report predicts that mobile ad spending, including messaging-based formats, will reach $416 million this year, but that number will increase to $1.56 billion by 2013.
“As an emerging advertising channel, mobile will continue to see lofty growth rates through 2013,” Noah Elkin, senior analyst at eMarketer and author of the new report, said. “Mobile will grow considerably more quickly than online ad spending as a whole, more in line with emerging online formats such as digital video.”
Although eMarketer has revised downward its projections for mobile advertising to account for the economic downturn, the overall long-term outlook for mobile is still optimistic. Other companies have predicted varying estimates for mobile ad spending.
Yankee Group predicts $184 million will be spent this year, while the Mobile Marketing Association predicts $1.7 billion will be spent this year. Experts say the difference in predictions reflects the immaturity of mobile advertising and marketing.
When it comes to spending share for various mobile formats, eMarketer predicts search will see an increase from $57.6 million, or 18 percent, in 2008 to $577.2 million, or 37 percent, in 2013. Display is expected to grow from 22 percent of the total to 35 percent, while SMS is predicted to decline from 60 percent of the total to 28 percent.
“Disparate hardware and software platforms, competing app stores, rival search engines and a large, fragmented universe of agencies and service providers make the mobile ecosystem more daunting than the desktop environment,” Elkin said. “But overcoming this complexity pays dividends.”


