Worldwide mobile advertising spend tipped to hit US$41.9bn in 2017

New Gartner report finds that display formats and video will record the highest growth

Global mobile advertising spending is forecast to hit US$41.9 billion (AUD$47.6bn) by 2017, driven by display formats and video categories.

Gartner’s Forecast: Mobile Advertising, Worldwide, 2010-2017 report found that mobile display advertising formats make up the largest category. However, according to Gartner France research director, Stephanie Baghdassarian, growth in mobile advertising spending will slow over the next few years due to ad space inventory supply growing faster than demand.

“The number of mobile websites and applications will increase faster than brands request ad space on mobile device screens,” she commented. “However, from 2015 to 2017, growth will be fuelled by improved market conditions such as provider consolidation, measurement standardisation and new targeting technologies, along with a sustained interest in the mobile medium from advertisers.”

Baghdassarian attributed this interest to search/map advertising, which will benefit from increased use of user location data. People will either opt into being located through their devices or `check in’ to places they visit by using apps such as Foursquare or Pinterest.

“Uptake of the audio/video format by the end of 2017 is forecast to be higher because the tablet form factor will drive video, and the tablet market continues to grow,” Baghdassarian said.

Turning to the regions, Baghdassarian said that because Asia Pacific and Japan is the most mature region for mobile advertising, growth will slow to 30 per cent per year between now and 2017.

“Historically, the high adoption of handsets for digital content consumption in Japan and South Korea has given the Asia Pacific region an early lead in mobile advertising,” she said. “Looking forward, Gartner expects the high-growth economies of China and India to contribute increasingly to mobile advertising growth as their expanding middle classes present attractive markets for global and local brands.”

In Latin America, Eastern Europe, the Middle East and Africa, mobile advertising growth will be dependent on technology adoption and stabilisation of emerging economies.

North America is tipped to have the most growth up to 2017, due to large advertising budgets shifting to mobile devices. In addition, Western Europe will continue to have strong mobile advertising for the next three years.

“The mobile channel will become more and more integrated into 360-degree advertising campaigns, eating up budget historically allocated to print and radio advertising,” added Baghdassarian.

The Gartner report also found global mobile advertising spending is forecast to reach $18 billion in 2014, up from $13.1 billion last year.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Signup to CMO’s new email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

I found decent information in your article. I am impressed with how nicely you described this subject, It is a gainful article for us. Th...

Daniel Hughes

What 1800 Flowers is doing to create a consistent customer communications experience

Read more

Extremely informative. One should definitely go through the blog in order to know different aspects of the Retail Business and retail Tec...

Sheetal Kamble

SAP retail chief: Why more retailers need to harness data differently

Read more

It's actually a nice and helpful piece of info. I am satisfied that you shared this helpful information with us. Please stay us informed ...

FIO Homes

How a brand facelift and content strategy turned real estate software, Rockend, around

Read more

I find this very strange. The Coles store i shop in still has Flouro lights? T though this would have been the 1st thing they would have ...

Brad

Coles launches new sustainability initiative

Read more

Well, the conversion can be increased by just using marketing, but in general if you are considering an example with Magento, then it is ...

Bob

How Remedy is using digital marketing and commerce to drive conversion

Read more

Blog Posts

Why conflict can be good for your brand

Conflict is essentially a clash. When between two people, it’s just about always a clash of views or opinions. And when it comes to this type of conflict, more than the misaligned views themselves, what we typically hate the most is our physiological response.

Kathy Benson

Chief client officer, Ipsos

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

You’re doing it wrong: Emotion doesn’t mean emotional

If you’ve been around advertising long enough, you’ve probably seen (or written) a slide which says: “They won’t remember what you say, they’ll remember how you made them feel.” But it’s wrong. Our understanding of how emotion is used in advertising has been ill informed and poorly applied.

Zac Martin

Senior planner, Ogilvy Melbourne

Sign in