Berg Insight Says Mobile will Account for 11.7 Percent of Digital Ad Spend in 2014

(Business News & Technology News, 26 Nov 2009)

According to analyst firm Berg Insight, the total value of the global mobile marketing and advertising market will grow from € 1.0 billion in 2008 at a compound annual growth rate (CAGR) of 43 percent to € 8.7 billion in 2014. This will then correspond to 11.7 percent of the total digital advertising market. 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 the mobile media will become a natural part of the marketing media mix. “Handsets are highly private devices that offer a unique platform for personal interaction with consumers”, said Marcus Persson, telecom analyst, Berg Insight. “Advertisers are increasingly aware of the opportunities and seek new ways to exploit them. Just the simple fact that people are able to make a phone call or send a text message anywhere at any time has changed the conditions for marketing in general.” He adds that many marketing campaigns are designed to trigger a response in the form of a voice call, SMS/MMS or a visit to a mobile web site. On-screen advertising on mobile displays has not taken off until very recently but is becoming increasingly relevant with the rising popularity of advanced Internet-enabled smartphones.

Berg Insight anticipates that there will be increasing convergence between traditional web and mobile advertising as the PC and mobile technological capabilities will come to merge. The most likely result of such a development is the formation of a few dominant digital advertising networks spanning all types of devices. Corporations such as Google and Microsoft openly aspire for this position in competition with among others Apple, Nokia and Yahoo!. Ultimately the control over advertising in handsets will reside far beyond the traditional mobile network environment.