A new report has suggested that global mobile ad spend will reach more than $39 billion (£18.6 billion) annually by 2018, which is triple the amount expected for this year.
According to the study, conducted by mobile telecoms research firm Juniper Research and published under the title “Mobile Advertising: In-App, Mobile Internet, and Messaging Strategies 2013-2018,” growth will be driven by the increasing adoption of analytic platforms that facilitate the rollout of innovative advertising formats and purchasing techniques.
Brands that spend large amounts on mobile will make use of opportunities stemming from targeted in-app advertising, Juniper said, taking note of Facebook’s success in capitalising on its mobile native applications, and its recent plans to introduce video ads to keep abreast with the growing popularity of rich, interactive media ads. Another key driver of mobile ad spend growth will be real-time bidding (RTB), a new method of selling and buying online display advertising in real time, which helps providers sell their advertising inventory more quickly.
Many brands, however, are still reluctant to embrace mobile, as they fear that mobile ads could be perceived by consumers as irrelevant or annoying. However, according to the report’s author Sian Rowlands, companies should not be afraid to take the plunge, because there has been a notable change in consumer attitudes towards mobile ads. This has been greatly influenced by brands’ use of opt-on, reward-style marketing techniques. Companies are further assisted by big data and location information in their mobile marketing efforts, which help them deliver ads that are as relevant as possible to users’ preferences, she said.