Annual Adspend on Mobile Channels to Reach $11 Billion by 2015 as Brands Embrace In-App Advertising

Special to TAG-IT News Agency

HAMPSHIRE, UK - Juniper Research has signaled an unprecedented interest in the mobile advertising space by key brands and agencies. This follows the dramatic increase in mobile application usage in key markets and the growing penetration of smartphones with location aware and augmented reality (AR) capabilities.

Global advertising expenditure on mobile delivery channels is expected to exceed $11 billion annually by 2015 up from $3.1 billion this year as campaigns seek to capitalize on the personalized, targeted advertising and high levels of user engagement that mobile has to offer.

Juniper's new Mobile Advertising Strategies report found that, in the wake of the surge in app downloads engendered by Apple's App Store and other storefront launches, brands are seeking either to offer dynamic advertising in-app, or else as with Barclaycard and Volkswagen to create their own apps with the aim of increasing brand exposure and engagement.

Meanwhile, advertisers such as Starbucks and LOreal are making greater use of location-based campaigns, in which they geo-fence selected zones and to push messages to customers that enter those designated areas.

However, the report cautioned that brands risked ignoring other, more established mobile distribution channels at their peril.  According to report author Dr Windsor Holden, 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. In many instances, a simple, interactive, opt-in SMS-based campaign might be far more effective.

Other key 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

The Mobile Advertising White Paper is available to download from the Juniper website together with further details of the study ' Mobile Advertising Strategies: Opportunities, Business Models & Forecasts 2010-2015.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.