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December 21, 2012

Berg Insight Provides New Research Report Indicating Total Value of Global Mobile and Advertising Market

By Tabitha Naylor, Contributing Writer

The total value of the global mobile marketing and advertising market will grow from $5 billion to $26 billion by 2017, according to a new research report from the analyst firm Berg Insight. This will then correspond to 15.5 percent or 4.4 percent of the total global ad spend for all media.

As the differences between devices are blurred, the definition used for mobile advertising is that it comprises the digital ads exposed on a mobile handset screen. According to the reports, mobile advertising expenditure is predicted to grow rapidly. This resonates well with the continuously increasing share of time people spend on the mobile channel.

“Consumers are currently devoting a quarter of their media consumption time on mobile devices, yet the channel only attracts slightly more than one percent of the ad dollars,” said Rickard Andersson, telecom analyst, Berg Insight.

The direction of the development is clear even though the transition of advertising expenditure from traditional media to digital channels has not kept up with the changes in consumer behavior.

Mr. Andersson added that in the medium-term, the new creative ad units suitable for mobile devices will spur mobile ad spend to increase several fold. Enabling automation in the ad buying process, advertisers today are keen on exploring opportunities with real-time bidding.

Although the mobile marketing value chain is still developing, however when it comes to mobile advertising, there are a large number of players dedicated to different activities related to it. Many different roles are involved since the value chain is fragmented and the industry has not yet reached maturity.

Edited by Carlos Olivera
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