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Mobile advertising spend on the rise: Juniper Research

New research claims that mobile search ad spend will reach $445 million this year, accounting for more than 34 percent of total mobile ad spend.

The research, from Juniper Research, indicates that mobile search ad spend will swell to $2 billion by 2013. The Juniper reports, "Mobile Search and Discovery" and "Mobile Advertising" found that as wireless carriers drop the walled-garden model, consumers will search for content on- and off-portal, providing a substantial target audience for advertisers.

"Mobile advertising will be the main source of revenue for mobile search," said Windsor Holden, principal analyst at Juniper, London.

"The report looks at a bunch of different mobile ad delivery options and historically SMS-based campaigns have been the most popular," he said. "But as more and more rich media phones come out, we suspect that this type of advertising may become quite popular."

Juniper provides research and analytical services to the global high-tech communications sector, providing consultancy, analyst reports and industry commentary.

The reports note that there are significant opportunities for advertising across a host of mobile applications and delivery mechanisms, with nascent channels such as MMS and idle-screen advertising attracting a combined annual ad spend of more than $1 billion within five years.

Total mobile ad spend will be $7.6 billion by 2013, up from $1.3 billion in 2008, Juniper said.

Mobile search revenues, including data charges, will reach $4.8 billion by 2013. Both mobile search ad spend and total mobile ad spend will be highest in the Far East/China region, followed by Western Europe and North America.

Juniper said that the most effective mobile campaigns are those that span different channels within the mobile environment, including idle-screen, mobile television campaigns, display advertising and SMS.

With many big brands making strides into mobile, the channel is slowly gaining acceptance. Advertisers are increasingly moving toward incorporating mobile advertising within a planned campaign as they become more comfortable with the medium and as the potential reach of mobile advertising increases.

Juniper assesses the current and future status of the mobile search and mobile advertising markets based on interviews, case studies and analysis from representatives of some of the leading organizations in the mobile search and mobile advertising industries.

"What's attractive about the mobile channel are the targeting and relevancy opportunities it brings," Mr. Holden said. "Also, it gives advertisers rapid feedback on click-through rates.

"Other, more traditional, forms of advertising are becoming less effective, pushing mobile into the forefront," he said. "If you can present tailored advertising to each consumer individually, that's got enormous appeal."