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Sunday, April 14, 2013

UK mobile advertising spend is now almost 10% of all internet ad spending

Figures from the Internet Advertising Bureau UK digital ad spend report, which was conducted by PwC, show that spending on mobile advertising in the UK exceeded half a billion pounds last year. Mobile advertising grew like-for-like by 148% to £526 million in 2012 from £203.2 million in 2011.

As a result, mobile now accounts for 9.7% of all digital advertising spend - compared to 1.1% in 2009.

Overall, UK digital advertising increased by 12.5% on 2011 to a new annual record of £5.42 billion. Ten years ago, less than £200 million was spent on UK internet advertising.

Tim Elkington, Director of Research & Strategy at the Internet Advertising Bureau, said “Mobile has reached this milestone because marketers are becoming more attuned to the ‘always on’ nature of consumers who expect to engage with content wherever they are. Consequently, advertisers are increasingly buying integrated campaigns across online and mobile rather than regarding mobile as an afterthought. There's simply so much buzz around mobile. In the last 6 months, 20 more of the UK’s top 100 advertisers have produced mobile-optimised websites; 4G mobile ultra-broadband is enabling a new era of richer content consumption with tablets predicted to outsell PCs in 2013. This will help maintain mobile’s significant momentum in attracting both consumer attention and advertising pounds.”

Mobile video advertising saw particularly dramatic growth, up 1,601% from £0.8 million in 2011 to £13 million in 2012. However, search remained the largest segment; it grew by 164% to £365 million, accounting for 69% of mobile ad spend. Mobile display advertising (including video) increased by 121% to £150 million.

Although the consumer goods sector (FMCG) was the biggest overall spender on digital display advertising, entertainment & media was the top sector for mobile display (16% of mobile display spend) followed by FMCG (13%), retail (12%), finance (12%) and technology (11%).

[Research presentation (access for IAB members)]

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Opinion Articles

‘The Eyes Have It’ at Mobile World Congress

James Rosewell writes:

DoCoMo are one of many network operators and handset manufacturers demonstrating innovative new products as Mobile World Congress. Our eye was caught by the employee demonstrating “Eye Controlled Earphones”. It’s a good job the ladies from the CBOSS stand weren’t walking past at the time.

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'Mobile Money Monday' at Mobile World Congress

James Rosewell writes:

Monday’s Mobile World Congress conference agenda dedicated one of 4 streams to Mobile Money - Transfers, Transactions and Technology allowing all stakeholders to share experiences and debate the future of Mobile and Money.

Two types of service dominated presentations and panel discussions; Near Field Communication (NFC) technology enabling payment at traditional Point of Sale (PoS), and the Mobile Wallet replacing plastic or cash.

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‘Innovation Corner’ at Mobile World Congress

James Rosewell writes:

Here’s my pick of the 3 most innovative companies I’ve uncovered at the 2010 Mobile World Congress.

Cootek.com win the prize for simplest innovation... an accurate touch screen keyboard. They’re a few months away from being ready to release the software to handset manufacturers, but the demo handsets worked very well. The keyboard assumes the user is not going to press the intended key, but in fact might miss and press another key in the same area. Based on this knowledge and an extensive dictionary of words and language context, it’s able to determine the intended word with surprising accuracy. I sincerely hope their technology will be made available for the Nexus One in the not too distant future.

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Google “Mobile First” from Eric Schmidt’s Key Note at Mobile World Congress

James Rosewell writes:

Google CEO, Eric Schmidt, presented a compelling vision of a mobile centric future. The phone has become the “high value end point” for Google services enabled by a combination of increasing handset power, mobile data networks and cloud computing. By far the scarcest resource is the bandwidth available through the mobile data networks. Google appear committed to work with Mobile Network Operators (MNO) to maximise bandwidth usage, although several audience questions suggested scepticism from the main stream mobile industry. Eric expressed a need to maintain a harmonious relationship with MNOs stating Google could not operate its service on mobile devices without their co-operation.

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The great Windows Mobile 7 conspiracy theory

Mark Bridge writes:

I like a good conspiracy theory. A good one, mind you. None of this “Funny thing happened on the way to Mars” nonsense. Oh no, not me. And, despite occasionally mirroring Jerry Fletcher by balancing a bottle on the door handle, I’ve never been inclined to publish such a theory. Until now.

You see, it’s Mobile World Congress in a fortnight’s time. Which is when the great and the good of the mobile industry – along with their mates and hangers-on – head for Barcelona. Microsoft will be there. They’re holding a press briefing on Monday afternoon. And there’s a lot of talk about Windows Mobile 7 being (unofficially) on the agenda. But where’s the evidence?

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