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!

Error: Please check your email address.
Show Comments

Blog Posts

Innovations in retail will bring creative and technology closer than ever

While approaching a customer in a shop and asking what you can help them with is Retail 101, how many of us actually enjoy being approached? Generally, you have to give the forced, fake smile and say, “Just browsing, thanks,” while screaming on the inside, “just leave me alone!” Maybe it’s just me?

Jason Dooris

CEO and founder, Atomic 212

There’s a brand in my digital soup

Not a day passes by in the life of business executives where digital innovation or the prospect of disruption is not front of mind. This in turn, drives an unrelenting flow of questioning, discussion and strategy papers.

Jean-Luc Ambrosi

Author, marketer

Can marketers trust agencies again?

Unless you’ve been marketing under a rock, you’ll probably have questioned whether your media agencies are offering you transparency.

Nic Halley

Founder and managing director, Mindbox

Nice post Brad! very useful information. The retail stores are really mean for every brand I am agree with you. Now Online Service Market...

Srialto

The rise of online retail marketplaces and what they mean for brands

Read more

Minor correct Nadia, just wanted to clarify that the "Marketo consultants" that did this work, were actually Hoosh consultants

Fab Capodicasa

What it's taking for Edible Blooms to grow a stronger personalisation strategy

Read more

Im not surprise though, been in the industry for couple of years and I feel and see it with my tow eyes how eCommerce platforms innovated...

Jason Smith

Australia Post earmarks $20m for Australian ecommerce innovation investment

Read more

For marketers that are "going Agile" I recommend using Ravetree. It's a really powerful suite of tools for Agile project management, reso...

Janice Morgan

7 ways to run your marketing department like a software startup

Read more

Over the years very part of our lives has become technological. That’s why I am not surprised to see that Australian home loans are going...

GreatDayTo

Why Aussie Home Loans is embracing digital transformation

Read more

Latest Podcast

More podcasts

Sign in