Sharp increase in mobile internet adspend expected

Growing consumer adoption of mobile internet services and heightened brand engagement with mobile services will be reflected in a sharp increase in expenditure on mobile internet advertising, a new report from Juniper Research has found.

According to the report, adspend on the mobile internet will approach $500 million globally in 2009, rising to nearly $2 billion per annum by 2014.

The Juniper Research report observed that in many markets where fixed internet access is limited, mobile has already becoming the dominant means of accessing the internet: in India, mobile accounted for nearly 90% of all that country’s internet users in 2008.

Furthermore, operator transition from a walled garden environment to a more open model has meant that mobile internet usage per se has surged worldwide. Thus, an ever increasing proportion of ad-funded and sponsored searches are occurring on mobile handsets.

In addition, mobile’s ability to offer instant measurement and precise response rates is making it an increasingly attractive option for brands seeking to demonstrate their levels of campaign engagement with consumers. According to report author Dr Windsor Holden: “Popular mobile internet sites are now attracting levels of usage that provide a strong case for advertising and sponsorship options. Furthermore, the fact that mobiles are far more personal than home computers – used only by a specific individual – means that brands can build up detailed profiles of user responses and plan follow up campaigns accordingly.”

Other findings from the mobile advertising research include: Mobile internet will account for the largest proportion of total mobile adspend for the first time in 2009, overtaking SMS advertising; The total value of adspend on mobile is expected to rise from just over $1.4bn in 2009 to $6bn in 2014; Despite the increasing popularity of mobile advertising, most campaigns are ad hoc and there are very few converged campaigns.

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