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Mobile Ad Spend To Double In 2012

The latest Global Media Forecast from Strategy Analytics shows that advertiser spending on mobile media is set to nearly double in 2012.

In 2011, advertisers spent $6.3 billion in the mobile arena, which is set to increase by 85 per cent this year to a reach a figure of $11.6 billion.

Consumer spending on mobile media won't increase nearly as much. The amount consumers spent on media, apps and mobile services is set to rise from $121.8 billion last year, to $138.2 billion this year, an increase of 13 per cent.

The total mobile media economy will be worth $150 billion in terms of revenue throughout 2012, Strategy Analytics estimates.

When it comes to the consumer, the majority of mobile spending (60 per cent) is on data plans and web browsing - but a key driver is the growth of apps, particularly on iOS and Android devices.

Apps are expected to represent 19 per cent of global consumer mobile spending throughout this year, hitting $26 billion, up nearly a third on 2011. Ad spend is set to increase alongside this - in the USA and Western Europe, in-app advertising revenue has overtaken mobile web ads (by a figure of $1.7 billion to $935 million).

David MacQueen, Strategy Analytics' Director of Wireless Media Strategies, commented: "Advertisers chase eyeballs so the fact that brands spend more on in-app advertising than the mobile web is a clear sign that apps are what consumers are glued to for an increasing range of activities. In the eyes of many advertisers, web browsing on the smartphone is playing second fiddle to the app economy."

Darren Allan

Darran has over 25 years of experience in digital and magazine publishing as a writer and editor. He's also an author, having co-written a novel published by Little, Brown (Hachette UK). He currently writes news, features and buying guides for TechRadar, and occasionally other Future websites such as T3 or Creative Bloq and he's a copy editor for TechRadar Pro. Darrran has written for a large number of tech and gaming websites/magazines in the past, including Web User and ComputerActive. He has also worked at IDG Media, having been the Editor of PC Games Solutions and the Deputy Editor of PC Home.