In-app mobile advertising spend to soar by 2015

As more people opt to use their mobile devices for access and content consumption, brands are catching on.

A recent report from Juniper Research says that in-app advertising spend across all mobile devices will reach US$7.1-billion by 2015. This significantly larger than the US$2.4-billion they’re expected to spend in 2012. North America and Western Europe will account for 60% of total advertising spend by 2017 and advertising spend on mobile messaging to increase eight-fold by 2017.

“The increasing spend on in-app ads will be driven by greater use of rich media in ads allied to greater app usage. This growth, from one of the key mobile advertising segments, will help to triple spend on mobile advertising by 2017,” says the research company.

Innovation in Mobile Advertising

According to the report, innovative in-app ads are more likely to get users’ attention than a simple banner ad. “The more engaged the user is with the advertising material, the more likely they are to click on it,” says Juniper. The company believes that more brands will begin experimenting with apps like Shazam to increase the interactivity of their ads, engagement with mobile advertising.

“Innovative brands are using rich media ads not only to draw consumers in with highly appealing experiences, but also to adapt adverts to meet their business needs. This could mean adding a map of nearby stores to an ad or even a button which dials a sales line so the user can discuss their needs,” says Juniper.

Due to the amount of time consumers are spending on apps on mobile devices, the research company feels “it is crucial to ensure that marketing material is adapted for mobile”. The company reckons though some brands are willing to experiment with mobile advertising, “there are many more that have yet to even develop a suitable mobile website”. It believes that these brands are “missing a key opportunity” to reach consumers. A “critical” error considering that “mobile has higher response rates than those seen elsewhere”.

According to report author Charlotte Miller, “Mobile advertising gives marketers the chance to reach consumers on a more personal level than any other type of advertising. Creating immersive and entertaining experiences to attract the attention of the consumer is essential for marketers wanting to take advantage of the massive increase in app usage.