Driven by rich-media approaches, in-app mobile advertising spending across all devices will reach $7.1 billion by 2015, up from $2.4 billion in 2012, according to new research from Juniper Research. In terms of advertising spend, the sector is expected to triple by 2017. Advertising spending on mobile messaging alone is expected to increase eight-fold by 2017.All of this translates into a big opportunity for mobile operators to add advertising to their stable of monetization techniques, particularly when considering the revenue-share opportunities in providing personalization data to apps developers and brands.
The key to growth is innovation and interactivity, the research firm found. For instance, using apps like the Shazam music-matching service to provide deeper content beyond the ad itself is one method. Adding a map of nearby stores to an ad or a button which dials a sales line so the user can discuss their needs are other ideas. It's an obvious finding, but the more engaged a user is with the ad, and the simpler it is to engage with it, the more likely a consumer is to click on it. Engagement is often the function of targeting and tailoring, which is something a mobile operators can play a part in given the rich level of knowledge it has in terms of user location and behavior.
Juniper also noted that consumers are spending ever more time using apps on their smartphones and tablets, but it's not enough to just repurpose a Web ad for this environment. It's also crucial to ensure that marketing material is adapted for mobile.
"Mobile advertising gives marketers the chance to reach consumers on a more personal level than any other type of advertising," said Juniper analyst Charlotte Miller. "Creating immersive and entertaining experiences to attract the attention of the consumer is essential for marketers wanting to take advantage of the massive increase in app usage."
However, while some brands have been willing to experiment with mobile advertising, there are many more that have yet to even develop a suitable mobile Web site, she noted. These brands risk missing a key opportunity to reach consumers; critical when you consider that mobile has higher response rates than those seen elsewhere.
Other key findings from the report include:
North America and Western Europe will lead the way in the growth, expected to account for 60 percent of total the mobile advertising spend by 2017.
