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December 21, 2011

Mobile advertising to grow 40 percent by 2016

Advertising world wakes up to mobile: research

By Tineka Smith

According to analyst firm Berg Insight, the global mobile marketing and advertising market will grow 37% CAGR to €17.2bn by 2016.

This will correspond to 15.2% of the total online advertising market, the researchers estimated.

Digital media being exposed on a mobile handset screen could prove to be successful, as online spending trends this year showed mobile usage an important medium through which online shoppers purchase goods.

"The popularity of smartphones and the increasing availability of mobile media that can include mobile advertising are the main game changers," said Rickard Andersson, Telecom Analyst at Berg Insight.

"Brands are now progressively embracing the mobile channel, including the entire range of apps from games and entertainment to utility applications," Andersson said.

Advertisers are also looking to invest in opportunities that offer location-based advertising (LBA) which can help in refining marketing messages so they are relevant to time and place.

Mobile marketing is still in the early stages of development but many big players like Apple, Google, Microsoft and Yahoo! are fighting over market share in the mobile arena, and would love to get their hands on a bigger slice of the pie. Facebook could also become a main player in mobile advertising if it can leverage its user data for specialised mobile campaigns – it’s also been rumoured for a while that Facebook will come out with a phone of its own, just like Google did.

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