Mobile Advertising Bucks Downward Trend in Adspend Reaching $5.7bn by 2014, Juniper Report finds

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Written on Thursday, June 11, 2009

I came across this press release from Juniper Research, regarding their latest report on mobile advertising, and wanted to share it with you all, because I think this is very interesting news.
HAMPSHIRE, UK: June, 3rd 2009 -- Advertising budgets for mobile channels are expected to buck the downward trend and exhibit strong growth over the next five years, according to a new report from Juniper Research.

The report found that constraints on budgets, imposed in the wake of the global economic downturn, had resulted in an increasing migration of adspend from above the line to below the line channels: the need for engagement with the consumer, and a quantifiable ROI, meant that mobile was increasingly being perceived as a key medium through which to pursue this strategy.

However, the Juniper mobile advertising report stressed that, while this was encouraging, the level of growth had to be put into context – that mobile advertising still remained very much a nascent medium, and even by 2014 it would only account for up to 1.5% of total global adspend.

The report noted that, while a number of major brands had made relatively large investments in the mobile platform, advertisers have yet to be fully convinced that mobile has sufficient reach to warrant substantive adspend. As report author Dr Windsor Holden pointed out, “These investments still form only a small proportion of a brand’s total advertising budget: 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.”

Other findings from the Juniper report include:

Mobile Internet will become the most popular mobile delivery channel for advertisers in 2009, and will attract the largest proportion of mobile adspend throughout the forecast period

Mobile Cost Per Clickthrough (CPC) and Cost Per Mille (CPM) rates have fallen sharply over the past year in large part due the negative impact of the economic downturn

Mobile advertising response rates remain substantially higher than those in other media

Juniper Research assesses the current and future status of mobile advertising based on interviews, case studies and analysis from representatives of some of the leading organisations in the growing mobile advertising industry.

Whitepapers and further details of the study ‘Mobile Advertising: Delivery Channels, Business Models & Forecasts 2009-2014 (Second Edition)’ can be freely downloaded from www.juniperresearch.com. Alternatively please contact John Levett at john.levett@juniperresearch.com, telephone +44(0)1256 830002.
This does come to confirm a growing feeling around the mobile marketing sector, that the economic downturn does not have the effect on mobile marketing and mobile advertising that it is having on most other business sectors. Certainly good news, isn't it?


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2 Comments

  1. Jennifer |

    Great news for companies like us who allow anyone to create and share mobile content for ANY device. In today's rough economic climate, mobile marketing allows companies to reach consumers directly on a device they carry with them everywhere. The only problem holding small-mid sized businesses back is cost. "When budgeting for a well-branded
    mobile Web/WAP campaign or
    application for all carriers and
    handsets, brands should plan for a
    ballpark figure of $250,000 and three
    months to six months’ development
    time.
    Source: Mobile Marketer, “Mobile
    Outlook for 2009 Report”
    How's that for a barrier? Once campaign creation costs are lowered and campaign creation simplified, we'll see a huge surge. Magmito has removed this barrier but let's get more competitors in our space and make this a priority.

     
  2. Randhir |

    Mobile marketing allows companies to reach consumers directly on a device they carry with them everywhere.Txtimpact offer out of mobile marketing solution, let brands, retails store run various campaigns to collect mobile numbers, such as txt voting, txt2win, m-coupon, etc. TxtImpact is certified to work with 95% carriers in US and compliance with MMA guideline.

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    ---randhir----
    http://www.wire2air.com

     

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