Report: Ads in Apps - €8.5 billion market by 2015

Posted by Richard Kastelein in Breaking News on December 09, 2010  |  0 Comments More from this author  |    |  Follow Richard Kastelein on: Facebook | LinkedIn | Twitter | YouTube

Juniper Research has signalled an unprecedented interest in the mobile application space by key brands and agencies, following the dramatic increase in mobile application usage in key markets and the growing penetration of smartphones with location aware and augmented reality (AR) capabilities.

Global advertising expenditure on mobile delivery channels is expected to exceed €8.5 billion annually by 2015 – up from €2 billion this year – as campaigns seek to capitalise on the personalised, targeted advertising and high levels of user engagement that mobile applications have to offer.

This can only be great news for not only the future of Connected TV apps, but also for Mobile and Tablet TV-related apps... Twitter's Robin Sloan recently and very interestingly hinted that the majority the 90m million tweets per day are TV related (he wouldn't say exactly how many), with Twitter peak times happening during real-time broadcast TV prime time.

TV-related activities are very much being done online, according to Neilson: being accessed via PC, Mobile and Tablets - and more and more via Apps.

The Social Network Water Cooler Effect: Three Reasons Why Facebook and Twitter Might Save Television

Remember when the Internet was supposed to kill off television? That hasn’t been the case lately, judging by the record television ratings for big-ticket events… Many television executives are crediting the Internet, in part, for the revival.

Blogs and social Web sites like Facebook and Twitter enable an online water-cooler conversation, encouraging people to split their time between the computer screen and the big-screen TV… If viewers cannot be in the same room, the next best thing is a chat room.

Juniper’s new Mobile Advertising Strategies report found that, in the wake of the surge in app downloads engendered by Apple’s App Store and other storefront launches, brands are seeking either to offer dynamic advertising in-app, or else – as with Barclaycard and Volkswagen – to create their own apps with the aim of increasing brand exposure and engagement.

Meanwhile, advertisers such as Starbucks and L’Oreal are making greater use of location-based campaigns, in which they geo-fence selected zones and to push messages to customers that enter those designated areas.

However, the report cautioned that brands risked ignoring other, more established mobile distribution channels at their peril. According to report author Dr Windsor Holden, “While smartphone apps can be extremely effective at generating brand visibility, they are by no means the optimal means of reaching the target demographic for every product – or for engaging with that demographic. In many instances, a simple, interactive, opt-in SMS-based campaign might be far more effective.”

Other key findings from the report include:

1. Increasing diversification within mobile ad networks is leading to the creation of dedicated premium/secondary premium networks and increasing role for ad exchanges
2. Brands indicate that the mobile share of the digital budget will rise significantly in the medium term
3. Ringback tone advertising is expected to become increasingly popular, primarily in developing/emerging markets

The Mobile Advertising White Paper is available to download from the Juniper website together with further details of the study ' Mobile Advertising Strategies: Opportunities, Business Models & Forecasts 2010-2015’.