Mobile ad spend set to hit $18b this year

Enterprise Innovation editors
22 Jan 2014
00:00

Global mobile advertising spending is forecast to reach $18.0 billion in 2014, up from the estimated $13.1 billion in 2013, according to research firm Gartner.

By 2017 spending is expected to balloon to $41.9 billion, with display formats making up the largest share of revenue but video will posting the highest growth, the firm added.

“Over the next few years, growth in mobile advertising spending will slow due to ad space inventory supply growing faster than demand, as the number of mobile websites and applications increases faster than brands request ad space on mobile device screens,” said Stephanie Baghdassarian, research director at Gartner.

“However, from 2015 to 2017, growth will be fueled by improved market conditions, such as provider consolidation, measurement standardization and new targeting technologies, along with a sustained interest in the mobile medium from advertisers.”

While mobile display ad formats are collectively the single biggest category of ads, Gartner expects this to shift to mobile web display after several years of higher growth in in-app display segment. Projected uptake of the audio/video format by the end of the forecast period is also higher because the tablet form factor will drive video, and the tablet market continues to grow.

Meanwhile, search/map ad types will benefit from increased use of location data gathered from users, either through them opting into being located automatically through their devices or because they proactively check in the places they visit using apps such as Foursquare and Pinterest.

In Asia-Pacific, Gartner said Japan is the most mature region for mobile advertising, and therefore growth will slow between 2012 and 2017, averaging 30% a year. Historically, the unusually high adoption of handsets for digital content consumption in Japan and South Korea has given the Asia-Pacific region an early lead in mobile advertising.

Looking forward, Gartner expects the high-growth economies of China and India to contribute increasingly to mobile advertising growth as their expanding middle classes present attractive markets for global and local brands.

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