Tuesday, 12 November 2013 12:34

Australian mobile advertising market booming


Mobile advertising in Australia is growing at nearly 40% a year. The market is predicted to grow at a compound annual growth rate (CAGR) of 39% from 2013 to 2018, with expenditure reaching $682 million in 2018.

By that time, 70% of overall mobile advertising spend will be served on tablets and 30% on smartphones. Frost & Sullivan’s new report, Australian Online General and Mobile
Advertising Market 2013
, reveals that 50% of companies plan to increase their mobile advertising budgets substantially this year, with 79% reporting intentions to increase mobile advertising expenditure by more than 10%.

Over the last 12 months there has been very high growth in mobile advertising expenditure, fuelled by strong growth in consumer media consumption on smartphones, but especially tablets. Mobile is increasingly being seen as an important part of the overall advertising strategy of both media agencies and brands.

“In the last 12 months, the Australian mobile advertising market grew strongly across all industries,” said Frost & Sullivan’s Phil Harpur. “Banking and finance and automotive continue to lead the market, though retail is also seeing strong adoption.

“Local mobile ad networks, such as Big Mobile, and global mobile ad networks such as InMobi and AdMob are expanding their business models within Australia. This momentum is expected to continue into 2014, assisted by the advance of mobile-specific advertising campaigns, optimised for both smartphones and tablets.”

Mobile advertising ad rates have remained stable over the past year. “Rich media is growing as a proportion of overall mobile ad inventory and has experienced upward pricing pressure,” said Harpur.

But the mobile video advertising market remains underdeveloped, though there is evidence of innovation such as video mobile ads embedded within banner ads. Mobile search advertising continues to grow strongly in line with the growing usage of mobile search, which has increased substantially over the past few years.

“High mobile usage has led to an oversupply of inventory spots. A major challenge for the industry moving forward is how to drive value in mobile and tablet advertising in light of the burgeoning supply of inventory via better targeting techniques.

“Higher demand is now coming for premium mobile ad solutions, which are seen as an essential part of an integrated advertising campaign covering both offline channels, such as TV and print, and online channels, both mobile and non-mobile,” said Harpur.


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Graeme Philipson

Graeme Philipson is senior associate editor at iTWire and editor of sister publication CommsWire. He is also founder and Research Director of Connection Research, a market research and analysis firm specialising in the convergence of sustainable, digital and environmental technologies. He has been in the high tech industry for more than 30 years, most of that time as a market researcher, analyst and journalist. He was founding editor of MIS magazine, and is a former editor of Computerworld Australia. He was a research director for Gartner Asia Pacific and research manager for the Yankee Group Australia. He was a long time IT columnist in The Age and The Sydney Morning Herald, and is a recipient of the Kester Award for lifetime achievement in IT journalism.



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