Mobile adspend to be driven by TV services
15 April 2008
Mobile adspend to be driven by TV services
Mobile streamed and broadcast TV services are anticipated to become the most lucrative delivery channels for mobile advertising by 2010.
Estimates from industry analyst Juniper Research, released Tuesday, say that total annual adspend on the mobile will exceed $1bn for the first time in 2008, reaching $1.3bn by the end of the year and rising to nearly $7.6bn by 2013.
SMS campaigns currently account for the largest proportion of mobile advertising budget, with nearly 1.5 billion mobile users to receive SMS advertising in 2008. But the increasing popularity of mobile TV services mean that adspend in this area will rise from just $335m in 2008 to more than $2.5bn in 2013.
Meanwhile, idle screen advertising is expected to become a significant contributor to total mobile adspend in the medium term, with revenues rising from just $7m in 2008 to more than $500m in 2013.
Juniper analyst Windsor Holden, said, "While adspend in the mobile environment is still extremely limited when compared to the budgets allocated to media such as magazines, television, cinema and the internet, the opportunities it offers - personalized advertising with very high response rates, delivered to a device which is always in close proximity to the individual - will make it an increasingly attractive proposition for leading brands."
Holden forecasts that China and the Far East will remain the largest regional market for mobile adspend through 2013, with revenues rising from $414m in 2008 to more than $2.1bn by 2012.
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