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Mobile ad spend set for significant growth

MUMBAI: During the next five years, mobile marketing expenditure is set for a significant expansion worldwide, according to a latest report by research firm Berg Insight.

The Sweden-based company has predicted that the overall mobile marketing could increase by 41 per cent annually from ?1.4 billion in 2009 to ?11.5 billion by 2015. These figures are possibly underestimated, as this year the ad market was worth over USD $12 billion in just the first half of the year alone.

Organisations such as Google, Yahoo and Microsoft, capable of serving both audiences are in a gainful position, while Apple‘s App Store has a considerable edge over others.

Going by the predicted figures, mobile advertising will be equivalent to 15.7 per cent of the entire digital advertising market and will account for 3.4 per cent of all media ad spend in 2015.

Said Berg Insight Telecoms analyst Rickard Andersson, "Handsets are extremely personal devices which people tend to always have within reach and most often switched on. This enables marketing opportunities which other channels lack."

"Brands do however have to establish mobile strategies in order to spend wisely and capitalise on the potential the channel brings," added Andersson.

According to Berg, the new media space will be dominated by a "convergence" between traditional web and mobile advertising.

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