Mobile streamed and broadcast TV services will become the most lucrative delivery channels for mobile advertising by 2010, according to a new report from Juniper Research.
The report says that total annual adspend on mobile will exceed $1 billion for the first time in 2008, reaching $1.3 billion by the end of the year and rising to nearly $7.6 billion by 2013.
While SMS campaigns currently account for the largest proportion of mobile advertising budget, the increasing popularity of mobile TV services mean that adspend in this area will rise from just $335 million in 2008 to more than $2.5 billion in 2013, said Juniper.
In the medium term, idle-screen advertising is expected to become a significant contributor to total mobile adspend in the medium term, with revenues rising from just $7 million in 2008 to more than $500 million in 2013.
Dr Windsor Holden, Report author, 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.”
The Juniper report also found that advertisers will refrain from committing significant budgets to mobile until operators and content providers address issues such as lack of inventory, reach and common metrics.
At the start of April, a report from the Nielsen Company revealed that 23% (58 million) of all US mobile subscribers say they’ve been exposed to advertising on their phones in the past 30 days.
Half (51% or 28 million) of all data users who recall seeing mobile advertising in the previous 30 days said they responded to a mobile ad in some way (see 28 Million US Mobile Subscribers Responded To At Least One Mobile Ad).
Last October, a forecast from eMarketer said that worldwide mobile brand advertising will rise to $3.5 billion in 2011, up from $123 million in 2006 (see Mobile Brand Ad Market Set To Grow).
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