Juniper Research said that key brands and agencies are embracing the mobile channel, following the increase in mobile application usage in key markets and the growing penetration of smartphones with location aware and augmented reality capabilities. In that sense, the research company predicts that global advertising expenditure on mobile delivery channels will exceed $11 billion annually by 2015, which is up from $3.1 billion this year.
Brands are seeking either to offer dynamic advertising in-app or create their own apps with the aim of increasing brand exposure and engagement. On the other hand, there are advertisers like Starbucks and L’Oreal, which are making greater use of location-based campaigns.
However, the report author Dr Windsor Holden suggests that some brands are not using “standard” mobile advertising techniques like opt-in SMS-based messages. He said: “While smartphone apps can be extremely effective at generating brand visibility, they are by no means the optimal means of reaching the target demographic for every product – or for engaging with that demographic.”
Other findings from the report include:
- Increasing diversification within mobile ad networks is leading to the creation of dedicated premium/secondary premium networks and increasing role for ad exchanges
- Brands indicate that the mobile share of the digital budget will rise significantly in the medium term
- Ringback tone advertising is expected to become increasingly popular, primarily in developing/emerging markets
And you can get additional information from Juniper’s website.