Mobile Ad Revenue Pushes $9 Billion in 2013

IAB has recently published a report on Global Advertising Revenue and how it has increased 83% from 2012 to 2013. The majority of this is due to search and display adverts which has been helping to push it towards $9 Billion in revenue during 2012 according to figures by the IAB and IHS. This means that by 2013 we should expect to see more of a consumer growth in this area. As in previous years the rate of growth has been exponential, 83% seems phenomenal until you realise the pace at which technology moves.

The trend we have seen towards a mobile oriented shift means that the market is only going to keep growing at an exponential rate. This means that more and more mobile advertising will become relevant for your online business and if you want targeted traffic then personalised adverts with media rich, interactive content are the way forward. People sometimes will get a sense of scale and believe your company is large if your app follows them from website to website. This is a common trick because Google adwords is good at tracking them and this is the thing that people will be interested in as exposure to your app will create interest in the consumer.

Search remains the biggest of all ad formats and accounts for 53%, or $4.7 billion. This huge chunk of internet marketing is only sure to get bigger as search is an on-the-fly activity. It’s triggered when someone wants to know something, they pull out their phone and hit ‘search’ on google. Since this is quick and effective the demand for the number of handsets can only increase. Thus the number of searches and the opportunity for businesses to target consumers with adverts increases.

It has not been spelled out by the reports but Google which has been the world leader in both the search and mobile OS markets is dominating. They carry almost 80% of internet search traffic and its Android OS which is even more proliferant than Apple’s IOS is keeping the giant firmly at the top. This is something to keep in mind when choosing a platform to display ads on as it will have the largest exposure and thus the largest pool of potential customers to advertise to.

Finally I want to point out that while you should be advertising on mobile, it is an advertising medium in its own right. For instance on desktop online advertising the point is to get the user to click something or take some online action. Whereas with a smartphone you have a lot less screen real estate and so you need to take into account the dimensions of the ad and what you are going to say. Furthermore because users on mobile likely have an even shorter attention span you need to capture their interest with an interactive advert in order to get a long message across.

UPDATE 2017: Mobile ad growth has grown even more since this article. In 2016, mobile ad spend topped $100 billion worldwide