Mobile advertising growth opens opportunities for app developers, platform providers
The growth in mobile advertising is creating revenue opportunities for mobile app developers, mobile platform providers, specialty agencies, ad networks and communications service providers, according to a recent report by research firm Gartner.
Worldwide, mobile advertising revenues reached $9.6 billion last year. Gartner predicts that number to reach $11.4 billion in 2013, and to more than double to $24.5 billion in 2016.
"Smartphones and media tablets extend the addressable market for mobile advertising in more and more geographies as an increasing population of users spends an increasing share of its time with these devices," said Andrew Frank, research vice president at Gartner.
Mobile display ad spending is expected to overtake mobile search in the coming years, predicts Gartner. Currently, mobile search, which includes paid positioning on maps and augmented reality, is driving mobile ad spending, although this will diminish in strength as the period progresses.
But mobile display ad spending will grow. It will initially remain divided between in-app and mobile web (in-browser) placements, although after several years of in-app dominance, web display spending will take over in-app display from 2015.
Gartner's mobile ad estimate jives with a recent prediction by Deloitte that mobile advertising will reach $9 billion this year, up 50 percent over last year.
Deloitte is also predicting that global shipments of smartphones will exceed one billion units this year and that the install base of smartphones will be close to two billion devices by the end of the year.