According to a report released by Gartner, mobile ad revenues around the world are predicted to increase at the rate of 18.7% this year. This comes up to $11.4 billion in total revenue projections. The same report predicts that mobile ad revenues will touch $24.5 billion by 2016. This scenario is looking favorable for app developers, publishers and ad networks since the compelling numbers and nature of the app economy is now eating into the budgets of traditional advertising mediums like print and radio.
The growth of mobile advertising has been very rapid. After the launch of the iPhone and its apps, mobile advertising as a practice got a new boost. Apps started offered new advertising opportunities to advertisers and marketers. Apps have seen heavy usage with all major smartphone platforms going after the app model. Asia Pacific seems to be leading the charge as far as mobile advertising is concerned because of the rapid adoption and proliferation of smartphones in addition to heavy consumption of mobile content in these geographies. The emerging markets for mobile internet and smartphones in India and China is set to take this lead even higher. The report also says that the US and European mobile advertising sectors will close the gap between them and Asia-Pacific countries because of the large scale integration of mobile advertising into mainline campaigns, thus giving rise to true 360 degree campaigns. Other emerging markets like South America, Eastern Europe, Africa and the Middle East will also contribute a lot to the total revenue figure in the years to come.
Does this mean mobile advertising will take over other forms of advertising? Well it looks like that when you realize that more and more people are using their mobile device as their primary means of consuming content. Mobile screens are also getting larger as rule and this gives the advertisers and ad networks a good opportunity to exploit richer platforms to deliver ads. The increasing amount of tractions and impressions claimed by ad networks is also an indicator.
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Story Source | Business Standard