Mobile ads to grow 50% a year - DecisionMarketing

Mobile advertising is predicted to grow 50% a year for the next two years – six times faster than desktop – driven by the rapid adoption of smartphones and tablets.
According to ZenithOptimedia’s new Advertising Expenditure Forecasts, global expenditure on mobile advertising was $13.4bn (£8.1bn) in 2013, representing 12.9% of Internet expenditure and 2.7% of advertising across all media.
By 2016 it forecasts that this will rise to $45.0bn (£27.2bn), representing 28.0% of Internet expenditure and 7.6% of all expenditure. This means mobile will leapfrog radio, magazines and outdoor within two years.
The Internet remains the fastest‐growing medium by some distance. It grew 16.2% in 2013, and the study forecasts an average of 16% annual growth for 2014 to 2016. The fastest‐growing sub‐category is display, which is forecast to grow at 21% a year to 2016.
raditional display (banners and other standard formats) is growing at 16% a year, boosted by the revolution in programmatic buying, which provides agencies and advertisers with more control and better value from their trading.
Social media (growing at 29% a year) and online video (23% a year) are also starting to benefit from programmatic buying, which is helping to sustain their rapid growth.
The research predicts online display will overtake paid search (which is growing at 13% a year) for the first time in 2015.
ZenithOptimedia chief executive Steve King said: “Advertisers are gaining in confidence as the world economy returns to stable growth. They will find plenty of opportunities to generate strong returns on their advertising investment in the fast‐growing digital media, but should remember that television has lost none of its power to reach large and engaged audiences.”
In December, ZenithOptimedia predicted mobile ads would account for more than a third (36%) of the $90bn (£55bn) in new ad revenue expected by 2016. However, it said this growth would not come at the expense of other media; it will be in addition to traditional channels such as TV, direct marketing and press.

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