According to a forecast by eMarketer, mobile advertising spending will soon overtake traditional print ads. The report predicts mobile spending to grow by a staggering 96% this year, hitting £2.02bn. That’s still a shade behind the forecast print spend of £2.06bn, but the report anticipates mobile ad spend will be worth £4.5bn in 2016. The UK’s total digital advertising market is forecast to be worth £7.25bn by the end of this year, growing to £8.64bn by 2016.
This rapid growth reflects the widespread adoption of secondary mobile devices used in conjunction with smartphones. By 2018, 50% of Brits are expected to own an iPad, Kindle or other tablet.
The eMarketer report states:
“Continued robust growth in the mobile channel is driving the bulk of [overall] digital ad growth in the UK. The dramatic growth of mobile and video ad expenditures will boost digital ad spending throughout the forecast period.”
This “mobile mushroom” is showing no signs of letting up. The numbers are truly dramatic: compare the £7.25bn valuation put on the market today with the £83m from four years ago and you get an idea of just how seismic this shift is. Mobile advertising will account for nearly 30% of all digital ad spending in 2014, according to the report.
So what’s prompted such an explosion in mobile marketing campaign spending? Most analysts agree that, in the UK at least, a strong economy, with the pound ringfenced from the worst effects of the Eurozone crisis, has instilled confidence in consumers. Plus, the efficacy of mobile marketing tactics are easy to track compared with traditional channels, causing advertisers to turn away from print (the report also predicts that the newspaper and magazine market will lose £276m in ad spend between 2014 and 2018).
A similar story is playing out on this side of the pond, with mobile spending accounting for 22.5% of all digital ad investments in 2013. A study conducted last year – also by eMarketer – indicated worldwide growth of mobile web ad spending had exceeded 100% by the year’s end, with mobile accounting for 15.2% of digital ad dollars spent globally.
The implications for your mobile marketing strategy are clear. Firstly, track the results of your print and mobile marketing campaign. Secondly, compare and contrast the success rates of your digital campaign and your traditional print campaign. If recent analysis is correct, you’ll find more and more consumers are turning to mobile to browse commercial prospects. Once that happens, you can adjust your budget accordingly, and start reaping the benefits of mobile.