Spend on in-app ads will increase fivefold by 2018

Latest predictions for spend on in-app advertising from Juniper Research

According to a new report from Juniper Research in-app mobile adspend should reach $16.9 billion by 2018 – up from $3.5 billion in 2013. The report says growth will be driven by several key factors including: – improved targeting capabilities plus a trend for more effective interactive rich media ads to be deployed in preference to traditional static display advertising. Plus tablets will close the adspend gap on smartphones.

The report, entitled ‘Mobile Advertising: In-App, Mobile Internet & Messaging Strategies 2013-2018‘,  argues that whilst smartphones currently account for approximately 70 per cent of in-app adspend, the growth in tablet users and usage would propel greater medium-term spend.

It also forecasts that tablet in-app adspend will be further fuelled by the fact that CPMs (Cost per 1,000 impressions) are significantly higher than those for smartphones.

This particularly applies to rich media ads, which also have higher CPMs than static display ads.

By 2018, the tablet/smartphone adspend split will be almost 50/50.

The majority of in-app advertising expenditure is likely to be spent on advertising with social mobile giants such as Facebook and Twitter,  although app downloads will increase exponentially to 2018.

“As the mobile advertising industry matures, more sophisticated advertising solutions are being installed by leading players, with a clear trend towards utilising location-based advertising to drive greater relevance,” observes report author, Sian Rowlands.

She also optimistic about the opportunities for smaller developers, Rownlands continued, “These new technologies and formats will benefit stakeholders across the mobile advertising value.

Other key findings from the report include: -

• Advertisers can increase conversions by simply adding mobile optimised features, for instance a ‘click to call’ button, or by linking to the relevant app store

• Global mobile ad spend will surpass $39 billion in 2018, up from $13 billion in 2013

• Rich media ad spend will surpass display ad spend in apps by 2018, as more engaging ad formats see huge uptake

A whitepaper entitled,  ‘Mobile Advertising – It All Ads Up’  is available to download free from the Juniper website here.

About Hans Cett

Hans Cett is an established freelance author and consultant specialising in the mobile communications industry. He also writes for Countdown2MWC - http://countdown2mwc.wordpress.com/
This article was published in Facebook, Mobile Ad&Mktg, Mobile Stats, tablets, twitter and tagged , , , . Bookmark the permalink.

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