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Mobile will account for 15% of global online ad spend in 2016

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Mobile will account for 15% of global online ad spend in 2016
Mobile will account for 15% of global online ad spend in 2016
According to a new research report from the analyst firm Berg Insight, the total value of the global mobile marketing and advertising market will grow from €2.6 billion in 2010 at a compound annual growth rate (CAGR) of 37% to €17.2 billion in 2016. This corresponds to 15.2% of the total online advertising market or 3.8% of the total global ad spend for all media.

As the digital convergence blurs the differences between devices the definition used for mobile advertising is that it is the digital media exposed on a mobile handset screen.

The report predicts that a major boom in mobile advertising is on its way after having remained on an experimental stage for several years. “The popularity of smartphones and the increasing availability of mobile media that can include mobile advertising are the main game changer,” says Rickard Andersson, Telecom Analyst, Berg Insight.

A common strategy is to increasingly integrate mobile components in traditional media campaigns. “Brands are now progressively embracing the mobile channel, including the entire range of apps from games and entertainment to utility applications. Also mobile web advertising and opt-in SMS campaigns are popular,” says Andersson. He adds that advertisers are also keen on exploring opportunities with location-based advertising (LBA) making marketing messages hyper-relevant both in time and place.

The mobile marketing value chain is still developing and there are a large number of players dedicated to different activities related to mobile advertising. Since the value chain is fragmented and the industry has not yet reached maturity, many different roles are involved. Traditional digital players and major mobile OS providers such as Google, Microsoft, Apple and Yahoo! are in fierce competition over market shares in the mobile advertising space. Facebook is furthermore on the verge of establishing its presence in mobile advertising, and may very well become an important player if leveraging user data for targeted mobile campaigns.

There is further a wide range of specialised mobile actors. Examples include the ad network Millennial Media, the ad exchange Smaato and the operator-centric advertising solution provider Amobee. Many acquisitions have recently taken place within the mobile marketing industry and further consolidation is expected to bring about an ecosystem consisting of a few dominant digital advertising networks spanning all types of devices.
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