Mobile advertising revenue jumped to $19.3 billion in 2013, almost doubling its total from 2012, according to a new estimate by the Interactive Advertising Bureau, IAB Europe and research firm IHS Technology.
One of the big findings was that while search represented nearly half (48.9%) of total global mobile ad revenue, pulling in $9.5 billion last year, it was display (41.5% share) that showed the most growth, surging 123.4% to $8 billion.
[Source: Interactive Advertising Bureau, August 2014]
Both categories were stimulated by smartphone penetration as more affordable data plans drove location-based search-on-the-go, said the IAB.
Interestingly, it was about a year ago (June 2013) that Opera Mediaworks’ CEO Mahi de Silva wrote in the Harvard Business Review:
“Over the past couple of years [mobile] has evolved so quickly that Gartner has even predicted mobile display ad spending will grow and take over from mobile search by 2016. We think it will be much sooner than that, perhaps as early as 2014.”
Looks like he might be right — display is really creeping up on search, and certainly has more momentum.
Messaging had a 9.6% share ($1.9 billion) and grew 19.4%, slowing down as users are shifting from operator-owned messaging services to alternative platforms like WeChat, Line and WhatsApp.
The regional breakdown was not much of a surprise. North America constituted the largest share of the mobile advertising at 41.9%, while Asia-Pacific was not far behind at 38.9%. Europe weighed in at 17.3%, the Middle East and Africa at 1.2%, and Latin America at 0.7%.
Growth year-over-year was solid across the board, led by Latin America, which soared 215% (to $144 million) from 2012 figures.
Major increases also came from North America and Europe. In 2013, North America saw growth of 122%, followed by Europe with 90%, Asia-Pacific with 69%, and the Middle East and Africa with 45%.
Much of the growth has been attested to the rapid adoption of Android devices globally, and how they are helping consumers shift from “dumb phones” to smartphones and other mobile devices where rich media ads can not only be served but are far more effective. (For more mobile ad trends from 2013, see our end of year report.)
Overall, these numbers really reflect mobile’s rapidly growing importance in the media world. And as mobile ad campaigns become easier to develop, purchase and measure, the mobile ad market is going to keep growing.
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