Mobile ad spending to triple by 2018, says Juniper
Spending on mobile advertising is expected to reach $39 billion in 2018, up from $13 billion this year, according to the latest forecast from Juniper Research.
The growth will be fueled by increased use of analytics platforms coupled with the launch of innovative advertising formats and purchasing mechanisms, judges Juniper.
Juniper's mobile ad spending figure for this year is lower than a recent estimate by eMarketer of $15.8 billion, or 2.6 percent of total ad spending and 11.9 percent of digital ad spending.
There will be increasing opportunities for targeted in-app advertising, according to Juniper.
For example, Facebook has been able to monetize its native apps, so that mobile contributes 41 percent of its overall advertising revenue. The social networking site plans to rollout video ads, highlighting the industry shift toward interactive rich media ads and away from mobile banner advertising.
As FierceMobileIT reported earlier this month, Facebook overhauled its mobile app install ads program, with a series of new features to enable businesses to increase engagement and conversions within their apps. The new features are designed to reach users who downloaded a given app and direct them back to specific content and products within the software framework.
In addition, the industry is seeing the growth of real-time bidding, which enables advertisers to buy impressions in real time. This means that publishers will be able to more easily sell their advertising inventory, which will boost overall mobile ad spend, Juniper related.
Some brands are still reluctant to spend money on mobile advertising--viewing it as inappropriate or intrusive. However, "we are witnessing a change in consumer perceptions of mobile advertising as advertisers begin to use opt-in, or reward-style advertising; by harnessing big data and location information, mobile ads are being better targeted to users," commented Sian Rowlands, Juniper analyst and author of the report.
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