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April 22, 2011

US Mobile Spends to Grow 500%, to reach $5 Billion in 2015






U.S. marketers are expected to buy more than $1 billion in mobile advertising next year, with strong growth continuing through at least 2014. Figures include many different types of ads, including banners, video, rich media, search, and message-based advertising. (Chart in millions of dollars and annual percent change) Data: eMarketer (Credit: Mark McKie )

 US mobile ad spend will surpass $6.5 billion in 2012, according to a new eMarketer report, "Mobile Advertising: After the Growing Pains,"

In similar forecasts report released by Forrester Research predicts that marketers will finally allocate sufficient funds into mobile, with an estimated $1 billion in spend for mobile display and search advertising by 2011 year-end. This surge in Mobile advertising will be mostly powered by increased  Smartphone adoption 

Google's bet on mobile display through AdMob and its growing suite of rich-media units, will soon unseat text messaging as the primary mobile-ad medium. Mobile search and display ads are expected to pass messaging in 2012. Upticks in mobile search and display also coincides with growing smartphone penetration; Nielsen says there will be more internet-enabled phones than basic-feature phones in the U.S. at some point next year. Search and display also rely on faster and more pervasive mobile-internet connectivity. 
Within mobile spending, video is the fastest growing ad medium, albeit from a tiny base, and will continue to be through 2014. The definition of mobile began to change in 2010 with the proliferation of tablet devices such Apple’s iPad, Samsung’s Galaxy Tab and BlackBerry’s PlayBook. 

Forrester Mobile Trends 2011,” also predicts mobile will combine with social and local services through programs like Facebook Places to gain significant traction over standalone location-based services. However, it says that ad revenue from such services will be cut short because of privacy concerns.

The report, written by Forrester analysts Thomas Husson and Julie Ask, also predicts companies planning to reach large audiences via mobile apps will continue to face a fragmented market with a wide variety of mobile devices, operating systems and screen sizes.
  • NFC, augmented reality and Quick Response, or QR, two-dimensional bar codes will finally reach their tipping points
  • 2011 will be the year of “the dumb smartphone user.” Because of deep discounts, smartphones will be available to the masses.
  • Apps versus WebThe never-ending debate on whether applications are better than the mobile Web will continue in 2011.