Mobile advertising: a leading industry within just three years


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Mobile advertisement is growing faster than any other type in the US. Advertisers allocate more and more budget to this vertical which is still has a lot of potential compared to its actual usage.

Looking back, we have noticed a sharp contrast between the time spent on mobile devices by users and the ad budget invested across the channel (still undeveloped).

 

BI Intelligence, the BusinessInsider’s data base forecasted that this gap will progressively be reduced over time in favour of mobile ad formats (particularly thanks to the advent of Rich Media formats and native ads). Advertisers start to also leverage the exact targeting options and web placements, which contributes to the current trend-reversal.

 

New data published by BI Intelligence shows that US mobile advertising market should reach 42 billion dollars in 2018 thanks to a compound annual growth rate (from CAGR) of 5% over five years, which equated in a 43% of growth from 2013 to 2018.

 

The report looks at the most developed mobile formats: display, video, social and search. It also provides some forecasts about the evolution of the different formats over the years to come and mobile ads performances. Programmatic technology is also tackled and discussed.

The reports key takeout’s

Here are the major announcements of the report:

  1. Mobile display and video will increase tremendously, surpassing desktop ads in 2015. In the US, display and video on mobile devices (since the report only deals with the US) are expected to reach respectively 96% and 73% of CAGR between 2013 and 2018.
  • Search and social will remain at the head of mobile devices even if growth was slower than expected. Search is the favourite and most used format thanks to the frequent use of search engines.
  • Mobile Ad revenues generated from programmatic (amongst RTB) will represent 43% of US Display in 2018 against 6% in 2013. However programmatic is more likely to be restricted for mobile because of the lack of efficiency of targeting via cookies.
  • In-app ads will be the head of web advertising. As a consequence, funds dedicated for this purpose will follow the same trend. The average click-through rate of in-app ads is reaching 0.56% versus 0.23% of ads displayed within a mobile browser during the first half of 2015, announced Medialets.

To download BI Intelligence report, you can click this link. You will find 12 graphs that illustrate BII forecasts but also a detailed case covering all the important points raised in this article.

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