Research from the Internet Advertising Bureau has revealed a growth in digital advertising in the UK, with mobile accounting for 10% of all digital revenue in 2012.
Digital ad revenue reached an annual high of £5.42 billion last year, a record 12.5% year on year high, mobile advertising was responsible for approximately £526 million, revealing a growth of 148%!
With an increase in Smartphone ownership expected to reach 75% by end of year 2013, it is no surprise that mobile advertising has grown by an astonishing 1,601% up to £13million, even without EE’s 4G prevalent network which will only be made readily available to the majority of operators this autumn.
It is also expected that the majority of search clicks in 2013 will come from mobile devices, with the prediction that mobile advertising “will undoubtedly be a billion pound medium within a few years”. Mobile has reached a milestone as marketers are becoming more attuned to the ‘always connected’ nature of consumers, who expect to engage with content wherever they are. This has resulted in advertisers encouraging consumers in all industries, to invest in integrated campaigns across online and mobile. As Anna Bartz from PwC, said: “The advertising market is shifting toward storytelling and integrated campaigns which give greater prominence to video and display formats with a higher degree of interactivity with the target audience”.
With the likes of social media sites such as Facebook, and with them recently unveiling plans for a Smartphone which it claims will “make the social network the home of Android devices, as it looks to expand its mobile advertising offering”, it is no wonder that social media has contributed to this astonishing high turnover in digital advertising. With mobile advertising increasing from £265 million to £328.4 million in 2012, meaning that in only 3 years social media revenue has quadrupled at 383%.
Last but not least, video ad revenue is responsible for 12% of all online and mobile display advertising with an overall £160 million revenue, which has helped contribute to such a high digital ad spend in 2012.
The top five display advertising sectors in 2012 are as follows; finance (15%), entertainment and media (13%), retail (12%) and technology (9%).