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Bull’s Eye – It’s All about the Targeting

July 20, 2011

mobile, advertising, smartphone

 

An exponential shift in advertising is upon us.  As content consumption continues to move from TVs to computers, laptops, and now smartphones, advertising dollars are going with it.  And it’s happening at a rapid pace.

In an interview with Beet.tv’s Andy Plesser, president of IAB’s Mobile Marketing Center of Excellence, Anna Bager, explains that the U.S. will pass the $1 billion dollar mark in mobile advertising this year. 

While $1 billion may not be a staggering number, the revelation lies in the exponential growth of mobile advertising. $550 million to $1 billion is almost a 100% increase.

According to recent Gartner research, “mobile advertising budgets are set to increase tremendously across the various categories and regions, growing from 0.5% of the total advertising budget in 2010 to over 4% in 2015."

Although television advertising continues to be the largest share of advertising spending, research indicates mobile is where the future of advertising growth lies. 

Research firm BIA/Kelsey forecasts that U.S. mobile ad spend is expected to grow from $790 million this year to $4 billion by 2015. One of the main reasons for this massive growth is mobile’s ability to target by location. Geo-targeted ads create a point-of-commerce technology that is becoming the go-to technique for advertisers.  

A PaidContent.org article points out:
 
“Most users will be using some kind of smartphone by 2015, plus, the ubiquity of mobile phones as most consumers’ constant companion makes betting on the dominance of local ads a safe one.”

It’s predicted that targeted local ads will account for 70% of total mobile advertising spend by 2015 compared to 51% this year - nearly a 50% increase.

"As the adoption of smart phones and media tablets extends to more consumers, the audience for mobile advertising will increase and become easier to segment and target, driving the growth of mobile advertising spend for brands and advertisers," explains Andrew Frank, vice president for research at Gartner.

By 2015, Asia-Pacific and Japan will account for 33.6% of global mobile advertising spending with North America and Western Europe representing 28% and 25% respectively.