[teleclick] Mobile advertising revenues will buck a downward trend in the wider advertising industry and grow significantly over the next five years, according to a recent report by Juniper Research.
Constrained advertising budgets in the wake of the global economic crisis are forcing companies to think creatively about marketing and aim for greater engagement with consumers, which will increase interest in mobile ad channels, Juniper predicts.
Researchers were careful to put this trend into context, however, noting that mobile advertising will still be a fairly minor part of the overall ad market, accounting for some 1.5% of global spending by 2014. Even major brands that are already investing in mobile ad space remain cautious about cutting spending on other forms of advertising.
“These investments still form only a small proportion of a brand’s total advertising budget,” explained Juniper analyst and report author, Dr. Windsor Holden. “Regardless of mobile’s advantages — its personal nature, the facility for highly targeted advertising — advertisers will not commit more budget until they perceive that the audience for their advertisements has reached a critical mass.”
Mobile Advertising Expected to Buck Downward Trend in Ad Industry