Total global advertiser spending on mobile messaging and display advertising is forecast to grow from $1.4 billion in 2006 to $2.9 billion in 2011, according to a new report from JupiterResearch.
According to the report, ad spending on mobile marketing will see substantial growth over the next five years, for the most part driven by mass-market penetration of mobile phones in the US.
JupiterResearch forecasts that mobile display advertising to grow from $56 million in 2006 to $224 million in 2011, although it also says that the increased supply will force average cost per thousand rates to fall from $41 in 2006 to $23 in 2011.
Julie Ask, research director and senior analyst, said: “Educating consumers, protecting their privacy, and mitigating their concerns about the cost of commercial text messages and spam, will be key to driving consumer interest and adoption of mobile marketing executed with SMS.
“Advertisers will benefit from working with established mobile agencies and aggregators who can help them understand the mobile environment.”
Recent research from eMarketer said that this year, revenues for short messaging service (SMS) will hit $20 billion in Western Europe (see SMS Continues To Be Profitable).
In addition, IDC’s Worldwide Quarterly Mobile Phone Tracker said that the worldwide mobile phone market is getting close to one billion units shipped for the year, with a total of 254.9 million units shipped in the third quarter of 2006 (see Worldwide Mobile Phone Market Sees Record Shipments).
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