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Consumers expected to increase mobile media spend by 13.4% this year, with advertising expected to increase by 85.4%


By The Drum Team | Editorial

April 20, 2012 | 2 min read

Consumer are expected to increase their mobile media spend - which covers consumer content, applications and services – by 13.4% to $138.2 billion in 2012, with 60.2% of this on data plans and web browsing.

According to the Global Mobile Media Forecast from Strategy Analytics, advertiser spend is expected to rise from $6.3 billion to $11.6 billion.

Over 23 billion apps were downloaded globally in 2011, which is expected to increase by 38% to over 32 billion in 2012.

It was discovered that across the USA and major Western European markets as a whole, revenue from display ads on the mobile web ($934.5 million) has been overtaken by in-app advertising ($1.7 billion).

David MacQueen, Strategy Analytics’ director of wireless media strategies, said: “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.”

108 billion videos were watched on mobile phones in 2011, almost trebling to 280 billion in 2012, according to predictions, although it is predicted to only be worth 2.4% of total media spend.

MacQueen added: “Low revenues are down to many major mobile video services being free to the end user, either funded by advertising (such as YouTube) or “bundled” without additional cost by pay TV providers, such as Sky Go around Europe or AT&T U-verse in the USA. Despite the huge audience of 271 million users, ad revenues from mobile video are tiny - a meager $223m globally in 2011. While ad revenues will more than triple to $726 million in 2012, it is still clearly challenging for advertisers looking to reach consumers through video ads on smartphones.”

Mobile spend image via Shutterstock

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