Mobile advertising elevation

By | Business
Ad revenues should raise £1billion to £18.9billion in 2014 and over £1.1billion in 2015. Image credit - www.4.bp.blogspot.com

A major increase in smartphone and mobile device advertising has created growth in the UK advertising market as industry experts reckon ad revenues should grow 5.5 percent this year and 6.5 percent next year to reach a record £20billion.

A report by the Advertising Association shows an increased trend as it confirmed the UK advertising market expended 3.9 percent last year, which is around £700million to £17.9billion.

Revenues should raise £1billion to £18.9billion in 2014 and over £1.1billion in 2015, adding to optimism about the economic recovery.

Traditional media sectors are also performing well. TV is set to rise 6.6 percent to £4.9billion as it is boosted by online video on demand. National newspapers are forecasted to be low at £1.5billion as digital growth offsets print decrease. Last year, digital advertising for national newsbrands surged 19.5 per cent.

Sir Martin Sorrell, chief executive of WPP, the world’s biggest advertising group, has reported a 7 percent rise in worldwide revenues in the first quarter and pointed to the decision by several major advertisers including Vodafone and Marks & Spencer to sign new media-buying deals in the last month as a sign of increased activity.

Tim Lefroy, chief executive at the Advertising Association said, “Another set of positive indicators to support the growth story, every pound spent on advertising returns six to GDP. The forecast explosion in mobile advertising and digital formats points to UK advertising at the centre of a global revolution in consumer information, service and choice.”

This boost to mobile advertising has dramatically helped social networking giant Facebook, as they have reported profits of $642million during the first quarter of 2014, beating analyst expectations. The firm said that a surge in mobile advertising helped push revenues 72 percent higher, to $2.5billion in the January-to-March period. Mobile now makes up 59 percent of advertising revenue, from 30 percent a year ago.

The firm has reached 1.28 billion users during the period, with more than a billion of those accessing the site through a mobile device, such as a smartphone or tablet. The company has taken steps to further grow its mobile business, which barely used to generate any advertising revenue a few years ago, by expanding its product offerings.

Research carried out by Opera Mediaworks as part of its State of Mobile Advertising report, has shown almost three-quarters, 72 percent, of mobile ad impressions in the UK come from apps. This is instead of mobile web and in comparison to the 31 per cent of ads viewed on apps globally.

It is found that in the UK, Apple leads for ad impressions, with 55 percent coming from iOS systems, while BlackBerry accounted for 16 per cent in the UK, compared to 1.14 percent globally.

Mark Slade, EMEA MD of Opera Mediaworks, said, “The picture of the UK that this report paints is clear, it’s a relatively wealthy, news-addicted market with strong mobile networks that support rich media advertising. The data shows that the UK is outperforming significantly when it comes to mobile ads, which is something that brands and agencies should take into account when it comes to planning campaigns.”

Eighteen million Britons now own a tablet, with six in ten saying it is their preferred method of going online when at home, according to the research. This is just four years after Apple launched the original iPad, which created an opportunity for advertisers and retailers, with many Britons now going online when they wouldn’t previously, for example when watching television.

Over 26 million UK consumers, or 41 percent of the total UK population, will use a tablet at least once a month this year, according to digital marketing firm eMarketer. In 2013, the iPad accounted for 57 percent of all tablet users in the country however, this year, eMarketer predicts that iPad users will make up just 49 percent of the UK tablet audience, as competitors move in on Apple’s market share.

What features do you believe the most successful marketing strategies have for example, investment in mobile advertising? 

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