Mobile ad spend set to hit $40 billion a year by 2018

A new study by Juniper Research finds that a combination of increased use of analytics along with new advertising formats and buying mechanisms will push mobile ad spending close to $40 billion by 2018.

Targeted in-app advertising is seen as offering a major opportunity and the report notes the way Facebook has used ads in its native apps over the past year as an example of the technique's success. Mobile now makes up 41 percent of Facebook's overall advertising revenue and the company recently announced it's to start rolling out video ads in a bid to boost performance with more media-rich content.

The report also notes the growth of real-time bidding (RTB) systems. These allow advertisers to buy impressions instantly and make it simpler for publishers to sell their advertising which should help boost overall ad spend.

Some brands remain wary of mobile advertising due to fears that they may be seen as intrusive. The report points out a disproportionately low spend on mobile advertising as a result, despite the high engagement levels it can produce.

Report author Sian Rowlands says, "We are witnessing a change in consumer perceptions of mobile advertising as advertisers begin to use opt-in, or reward-style advertising; by harnessing big data and location information, mobile ads are being better targeted to users".

Further key findings are that the biggest growth in mobile advertising will come on the Indian sub-continent where spend is forecast to quadruple by 2018. Also advertisers can increase conversations simply by including features like a click to call button.

How do you feel about mobile advertising? Will you be happy to see it increase or do you find it an annoyance? Let us know in the comments.

Image Credit: Maksim Kabakou/Shutterstock

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