A study released by Gartner revealed that China and India will contribute heavily to growth of mobile advertising as their expanding middle classes create potential markets for global and local brands. Japan is touted as the most mature region for mobile advertising. High adoption of mobile phones in South Korea and Japan have already given Asia-Pacific an early lead. Going forward, Asia-Pacific will register an average annual growth rate of 30 per cent till 2017.
On the whole, global mobile advertising spending is forecast to reach USD 18 billion in 2014, up from the estimated USD 13.1 billion in 2013. The market is expected to grow more than twice to USD 41.9 billion by 2017. (Read DMA’s mobile advertising trends here)
Mobile websites and apps see greater adoption
“Over the next few years, growth in mobile advertising spending will slow due to ad space inventory supply growing faster than demand, as the number of mobile websites and applications increases faster than brands request ad space on mobile device screens,” said Stephanie Baghdassarian, Research Director, Gartner.
She added, ”However, from 2015 to 2017, growth will be fueled 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.”
The report added that display formats will make up most of the revenue; although this category will shift to mobile Web display after several years of higher growth in in-app display. Video will show the highest growth because the tablet form factor will drive video, and the tablet market continues to grow globally. (Read DMA’s trends in video advertising here) North America is where most of growth will come from, due to the sheer scale of advertising budgets of marketers and their growing shift towards mobile.