A new report from IT research company Gartner forecasts a growth in mobile advertising spending this year, with the total global spend increasing to $18.0 billion (£10.9 billion) from last year’s estimated $13.1 billion total.
That growth is expected to continue for the next few years, with the mobile ad market being worth $41.9 billion (£25.4 billion) by 2017. The highest growth will come from video-related formats, with increasing tablet usage driving this growth, although conventional display formats on the web and within apps will still make up most of the revenue. There’ll also be an increased use of location data by advertisers, either by consumers opting in to targeting or be choosing to ‘check-in’ via apps.
Stephanie Baghdassarian, research director at Gartner, said “Over the next few years, growth in mobile advertising spending will slow due to ad space inventory supply growing faster than demand, as the number of mobile websites and applications increases faster than brands request ad space on mobile device screens. However, from 2015 to 2017, growth will be fueled by improved market conditions, such as provider consolidation, measurement standardization and new targeting technologies, along with a sustained interest in the mobile medium from advertisers.”
“The mobile channel will become more and more integrated into 360-degree advertising campaigns, eating up budget historically allocated to print and radio advertising.”