eMarketer: Worldwide mobile ad spending to hit $19.1 billion by 2012
By Alexandra Zeumer, Thursday 27 March 2008 at 21:51 :: Advertising :: #1455 :: rss
Worldwide mobile ad spending is expected to increase from US$2.7 billion in 2007 to $19.1 billion in 2012, according to a new eMarketer report, Media Post reported Thursday.
Most ad dollars will go to text messaging, which is expected to continue to be the dominant “non-voice mobile service” over the next few years, particularly in large markets in China and India that lack 3G networks. This year, U.S. mobile spending is predicted to almost double to $1.7 billion.
Advertising for SMS and MMS text-messaging, mobile instant messaging and mobile e-mail will account for more than $14 billion of the $19 billion total expected in 2012; this is up from $2.5 billion in 2007, according to eMarketer, Media Post reported.
The expansion of display and search advertising on mobile phones worldwide is expected to reach just $1.2 billion and $3.7 billion, respectively, by 2012, due to the slow development of high-speed mobile networks.
“Some of the economics of mobile broadband and ease-of-use are slowly coming together. It’s going to take a little longer than people will like, but it will come,” said John du Pre Gauntt, senior analyst at eMarketer, according to Media Post.
However, the emerging mobile industry still needs a “killer app,” to push mobile media ahead. This likely would include some kind of a social element, “such as a location-based dimension because that's a unique part of mobile, du Pre Gauntt told Media Post.
According to a September 2007 AdMob and M:Metrics study, cited by eMarketer, 72.4 percent of the worldwide mobile Internet advertising audience is below the age of 35. In 2007, the standard cost for a mobile marketing campaign more than tripled to $100,00.
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