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Mobile becomes core engagement channel for marketers: study

Annual global advertising spend on mobile devices is expected to reach $105 billion by 2019, up from an estimated $51 billion this year, as an attitude shift causes more brands and retailers to use mobile as a core channel for consumer engagement, according to a Juniper Research study.

The research, ?Digital Advertising: Online, Mobile and Wearables 2014-2019,? argues that the ability of smartphones to deliver targeted, personalized and timely advertising ? allied to millennials? fondness for multitasking on mobile ? means that mobile ads offer both high visibility and high response rates. The results point to the power of tech-savvy millennials to drive an attitudinal change among brands and retailers due to their embrace of a mobile-centered lifestyle.

?One of the main drivers of this change in attitude of brands and retailers is the changing consumer behavior with regards to technology,? said Steffen Sorrell, senior analyst with Juniper Research.
?The millennials have been driving this digital growth forward as they are more willing to test new technology. They are much more aware of their importance to advertisers and are likely to believe that they can influence a brand?s trajectory,? he said.

China growth
The research also observes a marked uplift in ad spend within the Far East and China region, fueled by the dramatic adoption of mobile commerce retail activity within China, and claims that the region is expected to account for 43 percent of global mobile advertising spend in 2019.

Seeing mobile as a core channel for engagement

Consumers also are growing more worried about privacy, with advertisers keen to exploit Big Data analytics to gain an insight into consumer online and offline behavior, including purchasing patterns, according to the study.

It observed that when the device user?s information is shared for advertising purposes, without prior consent, the consumer may feel a violation of rights has occurred. It therefore stresses the need for consumers to be opted-in to any data sharing to avoid both potential litigation and adverse publicity for the brands.

In other key findings, programmatic advertising will drive digital-advertising growth as technology advances over the years to come. Video advertising is expected to see progressive growth due to its higher engagement rates.

Opinions differ on the outlook for mobile ad spending. In January, Gartner forecast that mobile ad spend growth rate would slow as the supply of mobile ad space outpaces demand. That report was the latest to suggest that mobile advertising was still struggling to catch up with the skyrocketing use of mobile by consumers.

Despite predictions that the growth rate for mobile ad spending worldwide will slow over the next few years, Gartner still expected the global mobile ad market to reach $18 billion in 2014, up from $13.1 billion last year, and $41.9 billion by 2017.

Between 2015 and 2017, Gartner expected improved market conditions to drive growth in mobile ad spend. During this time, provider consolidation, measurement standardization and new targeting technologies were expected to drive growth.

One of the challenges marketers are going to face scaling up their mobile advertising strategies is likely to be how to drive engaging experiences on Android, according to Gartner. While engaging Android users is of growing importance given how many users are on the platform, marketers are still challenged monetizing these strategies compared to iOS.

In-app ads
As more people adopt smartphones, the ability of brands and advertisers to interact with consumers has been enhanced through phones? higher quality video and better in-app advertising.
Boosting engagement on mobile.

That development has made advertising more engaging for the consumer while allowing advertisers to tell their story more effectively.

?The always-on and stay-connected trend has prompted this advertising shift towards mobile devices,? Mr. Sorrell said. ?Consumers are using multiple mobile devices at the same time such as a smartphone and a tablet whilst watching TV or a TV show on a PC.?

Final Take
Michael Barris is staff reporter on Mobile Marketer, New York