Mobile ad spend to pass $39b in 2018

CRM Innovation editors
CRM Innovation
Increased use of analytics platforms, combined with 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, according to Juniper Research.
 
The new report, "Mobile Advertising: In-App, Mobile Internet & Messaging Strategies 2013-2018," highlighted the opportunities offered by targeted in-app advertising, citing the dramatic success of Facebook in monetising its native applications over the past year.
 
The research firm said mobile now contributes 41% of Facebook's 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.
 
Furthermore, the report observed that the growth of real-time bidding, 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.
 
“We are witnessing a change in consumer perceptions of mobile advertising as advertisers begin to use opt-in, or reward-style advertising; by harnessing big data and location information, mobile ads are being better targeted to users,” report author Sian Rowlands said.
 
The report suggests 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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