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
cmo-xs-promo

Latest Videos

More Videos

Thanks for your feedback, Rabi. While we introduced the ROO concept using a marketing example, I also believe that it is pertinent to man...

Iggy Pintado

Introducing Return on Outcome (ROO) - Brand science - CMO Australia

Read more

Thanks for your insight, Philip. Return On Outcome (ROO) requires balanced thinking with the focus on outcomes as opposed to returns.

Iggy Pintado

Introducing Return on Outcome (ROO) - Brand science - CMO Australia

Read more

Beautiful article.

Hodlbaba

15 brands jumping into NFTs

Read more

"Blue" is really gorgeous and perfectly imitates a human customer support operator. Personally, I won't order a chatbot development for m...

Nate Ginsburg

Why the newest member of BT’s contact centre is a chatbot

Read more

As today’s market changes rapidly, the tools we use change, and it is important to adapt to those changes to continue to succeed in busin...

Anna Duda

Report: 10 digital commerce trends here to stay

Read more

Blog Posts

How the pandemic revealed the antidote to marketing’s image problem

What does marketing truly ‘own’ in most organisations? Brand and campaigns, definitely. Customer experience? That remains contested ground.

Murray Howe

Founder, The Markitects

Still pursuing a 360-degree view of the customer?

On the Internet, nobody knows you’re a dog.” It may have been true in 1993 when this caption to a Peter Steiner cartoon appeared in the New Yorker. But after 30 years online, it’s no longer the case.

Agility in 2022

Only the agile will survive and thrive in this environment and that’s why in 2022, agility will need to be a whole-business priority.

Sam McConnell

Melbourne bureau chief, Alpha Digital

Sign in