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.
According to the IAB Internet Advertising Revenue Report by the Interactive Advertising Bureau and Pwc US, internet advertising revenues climbed to an all-time high of $17 billion, in the first half of 2012, representing a year-over-year 14% increase.
Highlights of the report include…
If you believe experts like Mary Meeker, mobile advertising is getting hotter every day, but a true revolution is still a ways off. The dollars spent on mobile marketing do not come close to lining up with the amount of time we spend with our devices, and “traditional” media like print and broadcast still attract the lion’s share of spending. In other words, we’ve had our mobile advertising “big bang,” but we haven’t yet fully adapted to life in our brand-new universe.
U.S. mobile users are getting used to seeing ads on their devices. A recent survey by Prosper Mobile Insights found that 74% of mobile users pay full attention to ads on their device – broken down to over a third (35.3%) who “regularly” pay attention to mobile ads and 38.7% “occasionally”. A new study from the Interactive Advertising Bureau looks deeper and reveals that mobile users are also acting on those ads, once spotted. The IAB’s Mobile Marketing Center of Excellence report, “Mobile’s Role in the Consumer’s Media Day”, surveyed 552 U.S. consumers who use a smartphone at least once a week and 563 U.S. tablet users who also are on their device at least once a week.
What’s the biggest challenge in mobile marketing today? Many would say that’s like asking which star in the heavens is the twinkliest, or which grain of sand on a beach is the grittiest. But I think there’s an answer, at least from the perspective of brands’ embrace of mobile.
Too many companies still believe that because smartphone browsers can render web content, their existing website can serve them equally well as a mobile landing page. In reality, anyone who has navigated to such a PC-optimized page on a phone knows that while the content may render, web pages designed for PC screens will be squashed down, requiring the viewer to “pinch and pull” to zoom in on sections of a page. Some components may not appear at all. And the whole thing may be unappealingly slow to load. The user experience can be adequate, but it’s hardly enjoyable, and companies that rely on it miss opportunities to build better relationships with their mobile customers or prospects.
What does the IAB mean by a “mobile-optimized” website? Four things: