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January 18, 2013

Global mobile advertising revenue to rise 400% by 2016: Gartner

Global mobile advertising revenue is anticipated to reach $11.4bn in 2013.

By CBR Staff Writer

According to a Gartner report, global mobile advertising revenue is expected to grow 400% by 2016 to $24.5bn.

The market is predicted to reach $11.4bn in 2013, an increase from $9.6bn in 2012.

During the three year period, mobile advertising revenues are expected to create new opportunities for appliacation developers, ad networks, mobile platform providers, specialty agencies and even communications service providers.

Gartner research director Stephanie Baghdassarian said that the mobile advertising market took off faster than expected due to an increased uptake in smartphones and tablets.

"Growth in mobile advertising comes in part at the expense of print formats, especially local newspapers, which currently face much lower ad yields as a result of mobile publishing initiatives," Baghdassarian said

The rise in adoption of handsets for digital content consumption in Japan and South Korea has placed the Asia/Pacific region in the top spot for global mobile advertising.

However, North America and Western Europe are expected to close the gap on Asia/Pacific due to higher integration of mobile channels including 360-degree advertising campaigns and consuming budgets alloted to print and radio.

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Gartner research vice president Andrew Frank said that smartphones and media tablets extend the addressable market for mobile advertising as more people around the worldwide adopt these devices.

"This market will therefore become easier to segment and target, driving the growth of mobile advertising spend for brands and advertisers," Frank said.

"Mobile advertising should be integrated into advertisers’ overall marketing campaigns in order to connect with their audience in very specific, actionable ways through their smartphones and/or tablets."

The research firm anticipates growth of mobile display ad spending to take over mobile search.

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