Mobile ad market predicted to rise from £526m in 2012 to £1bn as digital giants mine smartphone, tablet and app revolution
The UK mobile advertising market is forecast to almost double in 2013 to £1bn, as Google, Facebook and Twitter increasingly successfully mine the smartphone, tablet and app revolution. It is set to grow by 90% year on year, from £526m in 2012, according to digital ad spend figures published by eMarketer on Tuesday.
The breakneck growth has been fuelled by British consumers’ love of devices. Britain has the highest smartphone usage in the world and tablets are now commonplace. Looking ahead, the UK digital ad market will grow to almost £8bn by 2016, with mobile set to account for £3bn of that. To put this in context, in 2011 the Internet Advertising Bureau put mobile ad spend at a relatively paltry £203m.
LONDON: Brands and advertisers who want to reach consumers in Africa should consider mobile as their principal channel, as the continent experiences a combination of economic growth, expansion of mobile services and rapid uptake of smartphones.
These are the conclusions of a White Paper published by M&C Saatchi Mobile which seeks to dispel common misperceptions about the state of the African mobile telecoms market and to highlight the opportunities that mobile presents as a mass market channel for reaching and engaging with consumers.
“Contrary to popular thinking, Africa is not an under-developed region – it’s the second largest and fastest-growing mobile phone market in the world after China,” said James Hilton, Global CEO of M&C Saatchi Mobile.
“The large numbers of African mobile consumers with web-connected smartphones using their device to surf the internet or download apps shows that the assumption that mobile services in Africa are only about SMS and low-end handsets is seriously out of date,” he added.
Smartphone penetration already stands at 25% of mobile consumers in Nigeria and the White Paper expected that smartphone sales would account for 15% of the mobile market in Africa in 2014, rising to 40% by 2017. Read more
Mobile real-time bidding (RTB) spend in Europe increased 275% during the first quarter this year, while March alone saw a 66% jump in total RTB spend. The figures come from Adform’s RTB Trend Report Europe Q1 2013. Mobile still only accounts for less than 3% of total RTB impressions (2.75%), but the number is up significantly from 1.25% in Q4 2012. As “mobile” is really a tale of two devices, it’s worth breaking down spend on smartphones versus tablets, too.
According to the report, spend on smartphones currently exceeds spend on tablets. However, March was the strongest month yet for tablets in terms of percent of total RTB impressions.
IDC Press Release
FRAMINGHAM, Mass. – The worldwide mobile phone market grew 4% year over year in the seasonally slow first quarter of 2013 (1Q13) as smartphones outshipped feature phones for the first time. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 418.6 million mobile phones in 1Q13 compared to 402.4 million units in the first quarter of 2012 and 483.2 million units in the fourth quarter of 2012.
In the worldwide smartphone market, vendors shipped 216.2 million units in 1Q13, which marked the first time more than half (51.6%) the total phone shipments in a quarter were smartphones. The market grew 41.6% compared to the 152.7 million units shipped in 1Q12, but 5.1% lower than the 227.8 million units shipped in 4Q12.
Wall Street Journal
BARCELONA—Here are two stories that sum up the state of the phone industry as revealed at last week’s Mobile World Congress, the annual gathering of the mobile phone business. Firstly, what was the buzz of the show?
It wasn’t a top-end, LTE-enabled, quad-core processor smartphone—it was the Nokia NOK1V.HE +1.60% 105, a €15 phone. Its most notable feature—apart from its price—is its 35-day standby time. The second comes from the experiences of The Wall Street Journal. To save the blushes of one particular handset maker we won’t name the company, but it took us 12 takes to shoot a video review of one of its products. In the end we failed. Why? It took three takes only to discover we had filmed the wrong phone. It then took another nine to try to review the correct one. Every time we tried there was some button that was pushed by mistake, or we hit the wrong thing on the screen and it didn’t do what we thought it would. In the end we gave up. What do the two stories tell us? That real consumer benefits, like a monthlong standby, are valued by consumers. They also show that one phone looks a lot like an other and that adding extra functions to a device isn’t always the path to a good user experience.
When it comes to the mobile space, an important line is being drawn in the ether: that of influence by not necessarily conversion. New data out from L2 Think Tank indicates that mobiles are using increasingly using their devices – only not for purchasing Meanwhile, a new study out from ReRez Research on behalf of Symantec shows how quickly – or not – many brands are adopting the mobile space. According to the results:
• 66% say the benefits of mobile outweigh the risks
• For ‘Innovator’ businesses – those adopting mobile early – 28% use Android devices, 26% use iOS devices
• Three-quarters of Innovators have company polices for the use of ‘work’ smartphones/tablets
• Innovators have shown 44% revenue growth and 34% profit growth\
• ‘Traditionals’ – those adopting mobile more slowly – have shown 30% revenue growth and 23% profit growth
IDC Press Release
FRAMINGHAM, Mass.– When looking at a holistic view of smartphones, tablets, and PCs, one thing is clear – smartphones and tablets are driving mobility growth. According to the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, vendors shipped 367.7 million desktop PCs, portable PCs, tablets, and smartphones – a collective view IDC refers to as “Smart Connected Devices” – in the fourth quarter of 2012 (4Q12), up 28.3% from the prior year. As desktop PCs and portable PCs declined (-4.1% and -3.4%, respectively), the overall smart connected device space continued to surge to just over 1.2 billion shipments cumulatively in 2012. Tablet shipments experienced the largest year-over-year growth in 2012, up 78.4% over 2011, while smartphones grew 46.1% but accounted for 60.1% of all smart connected devices shipped throughout the year.
Investors may be underestimating what the power of compounding can do for Apple (NASDAQ: AAPL ) . If Apple can just sustain its current market share in the coming years, the power of compounding will drive unit volume growth for its iDevices through the roof. According to IDC, Apple is expected to grow its iPhone unit volume by 18.8% a year, roughly in line with the smartphone industry. At that pace, in three years’ time, Apple’s iPhone unit shipments will have increased by 68% since the end of 2012. On the tablet side, it’s expected that Apple will ship 20.9% more iPads per year until 2016, equating to a 77% increase from today’s levels. Are investors missing something so enormous it’s difficult to see? Or could it be that IDC’s estimates are completely off the mark and shouldn’t be trusted?
IDC Press Release
FRAMINGHAM, Mass. – The explosion of smartphone and tablet adoption will impact printing, scanning, document management, and print volumes in surprising ways over the next five years. According to a new International Data Corporation (IDC) survey of 800 unique respondents, smartphone and tablet users – whom the survey found to be younger, more likely male, have higher incomes, and increasingly hectic travel schedules – are surprisingly more likely than non-users to drive print. Smartphone and tablet users are more likely than non-users to print 16 of 20 business applications from their PCs.
The share of users printing from their smartphones and tablets will increase dramatically if users have their way, and the need to enable print and educate users how to print is clear. The percentage of users who printed from their mobile devices increased dramatically in 2012, and the percentage of those who do not print, and do not want to print, will decline from almost 50% in 2012 to just 25% in 2015 according to respondents. However, a large percentage of smartphone and tablet users do not know how to print from their devices, and a large share say their company has not yet enabled mobile printing.