Global mobile ad revenue will reach $11.4bn this year, says Gartner

Summary:Research firm Gartner says that the expanding mobile tech industry will result in advertising revenue reaching $11.4 billion by the end of the year.

Worldwide revenue for mobile advertising will jump from $9.6 billion in 2012 to $11.4 billion in 2013, according to Gartner.

The research agency says that the expansion in mobile revenue will result in new opportunities that app developers, ad networks, mobile platform providers, specialty agencies and communications firms can take advantage of in the coming years. As an example, app developers could distribute ad-supported, free apps in order to generate additional income, and agencies can pay for location-based advertising services on web browsers.

The increased adoption of mobile devices -- including smartphones and tablets -- may have impacted print media and services, but ad yields, especially in countries including Japan and South Korea, are expected to replace traditional advertising services. In addition, developing markets in China and India are forecast to become increasingly attractive markets for both global and local advertising brands to take advantage of the boom in mobile technology.

The 19 percent rise in revenue, based on last year's predicted advertising rates, has been revised from figures released in November, as Gartner believes the increased uptake in smartphones and tablets resulted in the mobile advertising market "taking off even faster than expected."

Andrew Frank, research vice president at Gartner, said:

"Smartphones and media tablets extend the addressable market for mobile advertising in more and more geographies as an increasing population of users spends an increasing share of its time with these devices.

This market will therefore become easier to segment and target, driving the growth of mobile advertising spend for brands and advertisers. Mobile advertising should be integrated into advertisers' overall marketing campaigns in order to connect with their audience in very specific, actionable ways through their smartphones and tablets."

Regional dominance may face an interesting shift in 2013, as the research firm says North America and Western Europe will "close the gap" on the Asia Pacific market due to what Gartner refers to as "360-degree advertising campaigns," in other words, advertising campaigns that follow you across whatever platform or device you use. In the rest of the world -- Latin America, Eastern Europe, and the Middle East and Africa -- mobile advertising is expected to rise in tandem with the stablization of economies and the growing adoption of mobile technology.

Gartner Says Worldwide Mobile Advertising Revenue to Reach $11.4 Billion in 2013

However, the Asia Pacific region will still keep the top spot in mobile advertising this year, and Gartner expects the worldwide market for mobile advertising to grow by a further 400 percent between now and 2016 to $24.5 billion.

The research firm states that mobile advertising is likely to eventually overtake mobile search, but will initially be divided between in-app and mobile browser advertising placement. However, web-based display spending is expected take over in-app display from 2015. In addition, new, more "engaging" advertising campaigns are expected to boost mobile advertising revenue growth; less intrusive ways of serving adverts, including reward schemes, may become more appealing to consumers and impact business marketing campaigns as a result.

Topics: Mobility, Smartphones, Tablets

About

Charlie Osborne, a medical anthropologist who studied at the University of Kent, UK, is a journalist, freelance photographer and former teacher. She has spent years travelling and working across Europe and the Middle East as a teacher, and has been involved in the running of businesses ranging from media and events to B2B sales. Charli... Full Bio

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