Juniper Research has signalled an unprecedented interest in the mobile advertising space by key brands and agencies. This follows the dramatic increase in mobile application usage in key markets and the growing penetration of smartphones with location aware and augmented reality (AR) capabilities.
Global advertising expenditure on mobile delivery channels is expected to exceed $11 billion annually by 2015 — up from $3.1 billion this year — as campaigns seek to capitalise on the personalised, targeted advertising and high levels of user engagement that mobile has to offer.
Juniper’s new Mobile Advertising report found that, in the wake of the surge in app downloads engendered by Apple’s App Store and other storefront launches, brands are seeking either to offer dynamic advertising in-app, or else — as with Barclaycard and Volkswagen — to create their own apps with the aim of increasing brand exposure and engagement.
Meanwhile, advertisers such as Starbucks and L’Oreal are making greater use of location-based campaigns, in which they geo-fence selected zones and to push messages to customers that enter those designated areas.
However, the report cautioned that brands risked ignoring other, more established mobile distribution channels at their peril. According to report author Dr Windsor Holden, “While smartphone apps can be extremely effective at generating brand visibility, they are by no means the optimal means of reaching the target demographic for every product — or for engaging with that demographic. In many instances, a simple, interactive, opt-in SMS-based campaign might be far more effective.”
Other key findings from the report include:
- Increasing diversification within mobile ad networks is leading to the creation of dedicated premium/secondary premium networks and increasing role for ad exchanges
- Brands indicate that the mobile share of the digital budget will rise significantly in the medium term
- Ringback tone advertising is expected to become increasingly popular, primarily in developing/emerging markets