Mobile advertising revenue to hit US$11.4bn in 2013 – Gartner

18 Jan 2013

Gartner’s latest report takes a look at the mobile advertising market worldwide and forecasts a growth of 400pc in revenue in the period from 2011 to 2016, creating new opportunities for app developers, and networks and mobile platform providers.

The report, Forecast: Mobile Advertising, Worldwide, 2009-2016, predicts that annual global revenue from mobile advertising will increase from US$9.6bn in 2012 to US$11.4bn in 2013, reaching heights of US$24.5bn by 2016.

“The mobile advertising market took off even faster than we expected due to an increased uptake in smartphones and tablets, as well as the merger of consumer behaviours 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.”

As more and more people spend more and more time interacting with mobile devices, the market becomes easier to segment and target for mobile advertising, added Andrew Frank, research vice-president at Gartner.

While mobile search advertising and augmented reality are expected to grow and evolve, Gartner sees these forms diminishing through the forecast period and as mobile display advertising becomes more dominant. Initially, this will be divided between in-app and mobile web placements, but after several years Gartner believes web display spending will win out by 2015.

Source: Gartner

While the Asia/Pacific region took an early lead in mobile advertising, driven by the high adoption of handsets in Japan and South Korea, high-growth economies like China and India are expected to factor more in mobile advertising growth in future.

Mobile advertising markets in North America and Western Europe are also expected to grow as 360-degree advertising campaigns take off, while growth in Latin America, Eastern Europe, the Middle East and Africa will be aligned with technology adoption and the stabilisation of emerging economies, and will mostly be driven by Russia, Brazil and Mexico.

Mobile dollars image via Shutterstock

Elaine Burke is the host of For Tech’s Sake, a co-production from Silicon Republic and The HeadStuff Podcast Network. She was previously the editor of Silicon Republic.