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January 21, 2014 03:03 pm GMT
In a new report on the mobile ad market, analyst Gartner is projecting a slowing in the growth rate over the next three years, owing to mobile ad inventory outpacing demand. But despite supply temporarily bubbling up to overtake demand — as the number of mobile websites and apps proliferate faster than brands request ad space on the small screen –it still expects advertisers to show what it describes as “sustained interest” in the medium over the coming years. And the size of the market to swell considerably. Gartner said it expects global mobile advertising spending to reach $18 billion this year, up from the estimated $13.1 billion in 2013. By 2017 it’s projecting the market will have sized up to be worth $41.9 billion. From 2015 to 2017 Gartner saidgrowth will be fuelled by “improved market conditions” — citing provider consolidation, measurement standardisation and new targeting technologies as likely areas helping to underpin and bolster the market. All global regions will experience “strong growth”, according to the analyst, although North American is projected to take the lion’s share of growth — owing to the very large scale of ad budgets in the region and their shift to mobile. It is also, after Japan/Asia Pac, the region where mobile advertising is most mature. In terms of mobile ad types, video will show the highest growth — with the category being driven by tablets and growth in tablet ownership — but display formats are expected to make up the most revenue. Gartner added that it expects the display category to shift to mobile web display after several years of higher growth in in-app display. Although it added that this shift is taking longer than expected, owing tothe use of HTML5 tools in mobile website development “taking longer to impact the market”. Other mobile ads types that are expected to get a boost during the forecast period include search/map ad types — which Gartner expects to benefit from increased use of location data gathered from mobile users opting in to location services or proactively checking in to the places they visit via their use of apps such as Foursquare and Pinterest. It said thisin turn will drive local advertisers to become more interested in the mobile channel. Turning to other regions, Western Europe is forecast to see a slightly lower scale in mobile advertising than North America over the period, but Gartner
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/df7x5YV95D4/
Mobile Ad Market Spending To Hit $18BN In 2014, Rising To ~$42BN By 2017, Says Gartner
In a new report on the mobile ad market, analyst Gartner is projecting a slowing in the growth rate over the next three years, owing to mobile ad inventory outpacing demand. But despite supply temporarily bubbling up to overtake demand — as the number of mobile websites and apps proliferate faster than brands request ad space on the small screen –it still expects advertisers to show what it describes as “sustained interest” in the medium over the coming years. And the size of the market to swell considerably. Gartner said it expects global mobile advertising spending to reach $18 billion this year, up from the estimated $13.1 billion in 2013. By 2017 it’s projecting the market will have sized up to be worth $41.9 billion. From 2015 to 2017 Gartner saidgrowth will be fuelled by “improved market conditions” — citing provider consolidation, measurement standardisation and new targeting technologies as likely areas helping to underpin and bolster the market. All global regions will experience “strong growth”, according to the analyst, although North American is projected to take the lion’s share of growth — owing to the very large scale of ad budgets in the region and their shift to mobile. It is also, after Japan/Asia Pac, the region where mobile advertising is most mature. In terms of mobile ad types, video will show the highest growth — with the category being driven by tablets and growth in tablet ownership — but display formats are expected to make up the most revenue. Gartner added that it expects the display category to shift to mobile web display after several years of higher growth in in-app display. Although it added that this shift is taking longer than expected, owing tothe use of HTML5 tools in mobile website development “taking longer to impact the market”. Other mobile ads types that are expected to get a boost during the forecast period include search/map ad types — which Gartner expects to benefit from increased use of location data gathered from mobile users opting in to location services or proactively checking in to the places they visit via their use of apps such as Foursquare and Pinterest. It said thisin turn will drive local advertisers to become more interested in the mobile channel. Turning to other regions, Western Europe is forecast to see a slightly lower scale in mobile advertising than North America over the period, but GartnerOriginal Link: http://feedproxy.google.com/~r/Techcrunch/~3/df7x5YV95D4/
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