A new research report from the analyst firm Berg Insight suggest that the total value of the global mobile marketing and advertising market will grow from 3.8 billion EUR in 2011 at a compound annual growth rate (CAGR) of 31% to 19.7 billion EUR in 2017. This will then correspond to 15.5% of the total online advertising market or 4.4% of the total global ad spend for all media. As the digital convergence blurs the differences between devices, the definition used for mobile advertising is that it comprises the digital ads exposed on a mobile handset screen.
Berg’s report predicts that the mobile advertising expenditure will increase rapidly, resonating well with the continuously increasing share of time people spend on the mobile channel at the expense of traditional media.
According to Telecom Analyst Rickard Andersson, consumers are currently devoting a quarter of their media consumption time on mobile devices, yet the channel only attracts slightly more than 1% of the ad dollars. However with the unique targeting possibilities and new creative ad units suitable for mobile devices, ad spend is set to increase severalfold in the medium-term.
The mobile marketing value chain is still developing and there is a large number of players dedicated to different activities related to mobile advertising. The major mobile OS providers Google and Apple already hold major market shares with their AdMob and iAd platforms, while Microsoft, Yahoo! and Facebook are also lining up to join the race. Moreover, there’s a wide range of specialized mobile actors like independent ad networks Millennial Media and InMobi, the ad exchange Smaato and Singtel-owned Amobee which are also help shaping up the landscape…
And if you want to know more, you can get additional information about the report from Berg Insight’s website (PDF).