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Mobile advertising market accounting for nearly $17 billion in annual revenue

Press Release   •   Jul 30, 2013 13:02 BST

Although only in its early years, the mobile advertising market accounts for nearly $17 billion in annual revenue, and promises to drive revenue generation opportunities for App developers, advertising networks, mobile platform providers and Mobile Network Operators (MNOs) alike.

As mobile phones outnumber TV sets by over 3 to 1, and PC based internet users by over 4 to 1, and the total laptop and desktop PC population by nearly 5 to 1, advertisers in many markets have recently rushed to this media. In Spain 75% of mobile phone owners receive ads, in France 62% and in Japan 54%.

Mobile advertising refers to a form of advertising via mobile phones or other mobile devices such as tablets. Although many view mobile advertising as sub-segment of online advertising, its scope is far greater with over 7 billion mobile subscriptions worldwide.

According to a recent report, 'The Mobile & Tablet Advertising Market: 2013 - 2020,' the growing penetration of smartphones and tablets has further extended the addressable market for mobile advertising as users spend an increasing amount of their time with these devices.

Although SMS is still the first choice for many advertisers for mass-market mobile campaigns, the majority and increasing share of mobile advertising revenues are now coming from mobile Internet based ads including display, search and in-app advertising.

In the Q2 2013 "State of Mobile Advertising Report" by Opera Mediaworks, it is reported that mobile advertising is growing globally at a rapid rate. Rich media ads are now averaging a 1.53 percentage click rate among users. In app large banner adds are still the most popular, but they are on the decline.

Many emerging markets, particularly the high-growth BRIC countries, offer great potential for the growth of mobile advertising. The strong pace of smartphone adoption in these countries and the fact that mobile-Internet penetration is significantly higher than fixed

Internet means that users have a high engagement on mobile and are more likely to respond to the advertising and marketing messages that they receive on their mobile.

Just last week, Facebook announced shares are soaring after the social media giant reported a much-improved second-quarter revenue and profit as it pushes hard into mobile advertising.

Facebook began showing mobile advertisements for the first time last spring. It said late Wednesday that they accounted for a whopping 41 percent of its total advertising revenue. That advertising had been a big concern for investors since the initial public offering.

For more information on the mobile advertising market, see the latest research: Mobile Advertising Market

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