Mobile advertising spend is forecast to grow three-fold in the next five years.
A new publication from Juniper Research has boldly stated the global mobile advertising sector will see a major upturn in value over the coming years.
According to the Mobile Advertising: In-App, Mobile Internet & Messaging Strategies 2013-2018 report, increased utilisation of business data analytics coupled with new purchasing mechanisms will see worldwide spending on mobile ad rise from $13 billion (£8 billion) this year to $39 billion by 2018.
It showed how the rise in penetration of mobile trading platforms and the monetisation of social media sites like Facebook will have a dramatic impact on the sector.
Indeed, the report revealed that over the last 12 months, Facebook has seen the contribution from mobile to its overall advertising spending rise to 41 per cent, with a shift in focus from “under-performing” ad banners to more interactive rich media content helping to deliver improved engagement.
During the second quarter of 2013, Facebook earned an impressive $651 million from mobile ad revenues – up from a negligible amount in the same period last year.
The Juniper Research study went on to claim many businesses are now realising the consumer is open to such mobile ads, allaying fears in some quarters that mobile owners do not respond well to such advertising, believing it to be “intrusive” or “inappropriate”.
Report author Sian Rowlands commented: “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.”
This change in the way targeted mobile advertising is being sent to consumers means firms are able to achieve a better response to their marketing efforts than they may have seen in the past.
Furthermore, other key findings of the report included the fact recipients will often respond better to advertisements that are optimised for their mobile, such as ‘click to call’ features or by linking directly to the correct app store.