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Mobile ad revenues set to touch $11.4 bn in 2013: Gartner

Smartphones and media tablets extend the addressable market for mobile advertising in more and more geographies

Mahesh Kulkarni  |  Bangalore 

Worldwide mobile advertising revenue is set to grow 18.7% to touch $11.4 billion in 2013 as against $9.6 billion in 2012, according to Gartner, Inc. Worldwide revenue will reach $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.

“The mobile advertising market took off even faster than we expected due to an increased uptake in smart phones and tablets, as well as the merger of consumer behaviors on computers and mobile devices,” said Stephanie Baghdassarian, research director at Gartner.

Growth in mobile advertising comes in part at the expense of print formats, especially local newspapers, which currently face much lower ad yields as a result of mobile publishing initiatives, Baghdassarian said.
 
“Smart phones and media tablets extend the addressable market for mobile advertising in more and more geographies as an increasing population of users spend an increasing share of its time with these devices,” said Andrew Frank, research vice president at Gartner.


“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 smart phones and/or tablets,” he said.
 
Geographical regions will also evolve at a different pace and in different directions. Historically, the atypically large adoption of handsets for digital content consumption in Japan and South Korea has given the Asia-Pacific region an early lead in mobile advertising worldwide. Looking forward, 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.
 
However, North America and Western Europe will close the gap on Asia-Pacific as the mobile channel gets more and more integrated with 360-degree advertising campaigns, eating up budgets historically allocated to print and radio. Consumer multitasking will drive preference for multi-platform approaches, which will blur the lines between channels and make it difficult to eliminate category overlap. In the rest of the world — Latin America, Eastern Europe, and the Middle East and Africa — mobile advertising growth will be aligned with technology adoption and the stabilization of emerging economies, but will mostly be driven by large markets such as Russia, Brazil and Mexico.

First Published: Thu, January 17 2013. 13:17 IST
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