Mobile Advertising Spend Increases Dramatically

UK Digital Ad Spend 2012Digital advertising has shot up in the past few months as advertisers target mobile devices more…

Research conducted for the Internet Advertising Bureau (IAB) shows that advertising spend on UK internet advertising has reached a record high of £5.416 billion in 2012.

The total figure is up 12.5% on the year before’s figure with £4.81 billion being spent in 2011.

Mobile advertising makes up more than half of digital ad growth. in 2011 mobile ad spend was £203.2 million.

By 2012 ad spend on mobile had increased by 148% and the total for 2012 now sits at £526 million, over half a billion pounds.

Looking back to 2009 mobile advertising comprised just 1.1% of all digital advertising. Now, with the prevalence of smart phones and other advanced mobile devices, that proportion has increased to 9.7% of all digital ad spend.

Tim Elkington, Director of Research & Strategy at the Internet Advertising Bureau, said of the figures:

“Mobile has reached this milestone because marketers are becoming more attuned to the ‘always on’ nature of consumers who expect to engage with content wherever they are. Consequently, advertisers are increasingly buying integrated campaigns across online and mobile rather than regarding mobile as an afterthought,”

Elkington added

"There’s simply so much buzz around mobile. In the last six months, 20 more of the UK’s top 100 advertisers have produced mobile-optimised websites. 4G mobile ultra-broadband is enabling a new era of richer content consumption with tablets predicted to outsell PCs in 2013. This will help maintain mobile’s significant momentum in attracting both consumer attention and advertising pounds."

The IAB survey also shows how online marketing has increased over recent years – In 2002 digital spend was less than £200 million. Today, it is greater then £5 billion.

Fast-moving consumer goods (FMCG) are the prime spenders on digital display ads, as Elkington explains:

"FMCG brands now realise that online isn’t all about click-through but that online can deliver cost-effective brand awareness."

Other findings from the PwC/IAB survey are that mobile video advertising has leapt from under £1 million (£0.8 million) in 2011 to £13 million in 2012. That’s a staggering 1,601% increase. Video ads have been on the increase but mobile has shown the most dramatic jump.

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