UK mobile ad spend forecast to treble over next four years

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Media Week

29/04/2008

Mobile TV will account for 87% of an estimated $2.8bn global mobile advertising market in 2012, with advertising making up one fifth of mobile TV revenues, according to a new report by Screen Digest.

It examined the findings of a survey of GroupM executives across 25 countries to assess the current status and future potential for mobile advertising worldwide. The total UK mobile advertising market will be worth £24.9m in 2012, up from £7.4m in 2008.

Advertising around mobile TV services in the UK will amount to £17.4m in 2012, up from £4.3m in 2008, the report forecasts.
Advertising around mobile video-on-demand services will top £6.7m, user-generated content will take £800,000 in mobile ad spend and games will attract £100,000.

However, while the mobile advertising medium is set for growth, the report indicates that it will remain significantly dwarfed by established rival media such as online and TV.

The report found the format is still in its infancy, with only 15% of GroupM executives having used mobile advertising, either standalone or as part of an integrated campaign. Handset limitations and a lack of clear measurement metrics were among the reasons given for not using the format.

Tom Dunn, planning associate at I-Level, questioned the report's assumption that video will dominate mobile ad spend. He said: "There's no mention of search advertising on mobile in the report - which has the potential to be huge - and I wouldn't rule out gaming and UGC having a larger share than the report suggests."

Tom-Dunn