Thursday, April 11, 2013

Mobile Ad Spending Doubles in UK

Analysts predicted that mobile-directed advertising expenditures would increase as penetration of smartphones and tablets continued, and 4G cellular service - with its high-speed broadband data connections - was implemented.  What they didn't expect was the pace of the increase.  A new report by PwC for the UK Internet Advertising Bureau indicates that mobile ad revenues increased 148% in 2012.
  The report indicates that online advertising by UK firms increased 12.5% last year, to £5.42bn.  Mobile ads were first separated out in 2009, and accounted for about 1% of online advertising at that time.  In 2012, mobile ad revenues accounted for nearly 10% of all online ad expenditures.
"In the last 6 months, 20 more of the UK's top 100 advertisers have produced mobile-optimised websites; 4G mobile ultra-broadband is enabling a new era of richer content consumption with tablets predicted to outsell PCs in 2013," (Internet Advertising Bureau Research & Strategy director Tim) Elkington said.
In 2012, mobile video ads brought in £13 million, and mobile display contributed £150 million.  Overall, however, the display ad share of digital advertising revenues fell to 24% - and analysts suggest display's share will continue to fall as advertisers start taking advantage of rich media, interactivity, and targeting:
PwC Senior Manager Anna Bartz said the advertising market is shifting toward story telling and integrated campaigns which give greater prominence to video and display formats with a higher degree of interactivity with the target audience.  "Over the past two years, the digital advertising revenue model has also changed from an emphasis on direct response to being more about branding and awareness."
   It's good to see the advertising industry starting to take advantage of the new opportunities that the Internet, social media, and mobile systems provide.

Source -  UK mobile ad spending more than doubles in 2012: report, CBR


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