Mobile marketing and advertising to grow at CAGR of 26%, estimates Berg

According to a new research report from the analyst firm Berg Insight, the total value of the global mobile marketing and advertising market will grow from € 6.9 billion in 2012 at a compound annual growth rate (CAGR) of 26 percent to € 27.9 billion in 2018. This will then correspond to 19.3 percent of the total online advertising market or 5.9 percent of the total global ad spend for all media. On a global level, mobile search advertising is estimated to represent the largest share of more than 50 percent of the total mobile ad spend, followed by display advertising and messaging. There are however considerable regional differences in the format distribution depending for example on the level of maturity and local preferences across markets. “There is currently a mismatch between the ad dollars spent on different media and the share of time consumers devote to the various channels”, said Rickard Andersson, Senior Analyst, Berg Insight. Some channels such as print media receive a greater share of the total ad spend than can be motivated from a consumer behaviour standpoint while other channels receive too little investments. “Mobile devices are on average devoted a double digit percentage of consumers’ time, yet the channel only attracts a few percent of the total global ad spend”, said Mr. Andersson. He adds that this discrepancy can be explained by the relative ne...