With more and more smart mobile devices being purchased worldwide (and more expected to sell through the holiday season), it shouldn’t be a huge surprise that advertising on those devices is picking up as well.
The market for mobile advertising has shown a much greater growth than other digital advertising formats across the United States, estimated around $50 billion dollars – nearly $10 billion over what was spent last year.
Mobile advertising is effective mainly due to the growth of the “mobile first” audience, where a variety of business and casual folks prefer to use their smartphones and/or tablets to surf the web, check messages and other information.
However, BI Intelligence, in a recent report, indicated that the gap between the amount of time these users spend on their devices and the amount of money spent on advertisements will narrow over the next few years, with more ad formats being introduced and more advertisers finding ways to attract to an audience. That, and, of course, the sales of more devices from the likes of Apple, Samsung and other manufacturers.
The report also points out that US mobile ad spending will increase substantially by 2018, based on a growth of a five-year compound annual growth rate of 43 percent from 2013, according to Business Insider. This includes formats across the board, including display ads, video, social embedding and search through Google and other engines.
Revenues are likely to increase as well, as the report shows that both mobile display and video ads will lead the charge with 96 and 73 percent, respectively, over the next few years. That doesn’t mean you should count out social and search, though, as they will still retain enough of a share in the market to remain profitable.
In addition, in-app mobile ads are likely to perform better than general web ads, with an increase expected in both usage and performance. Medialets reported that in-all click-through rates have seen an increase to .56 percent globally, compared to .23 percent for mobile web ads. This number is likely to go on the rise as well.
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