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August 5, 2014

Spending on mobile data to reach $380bn by 2018

Annual spending on premium content to rise at less than 20% over the next five years.

By CBR Staff Writer

Spending on consumer mobile media services such as mobile applications, movies, games, music, and browsing through handsets excluding tablets will rise from $236bn in 2013 to $380bn in 2018.

According to a report from Strategy Analytics, demand in North America and Western Europe will drive data adoption which would increase the demand for media-centric smartphones.

The report also suggests that mobile operators will benefit from increased spending on mobile data which is expected to top $254bn by 2018.

Mobile advertising is also expected to become a revenue engine with an estimated $41bn to be spent by 2018, which would account for 11% of all mobile media revenue.

Wireless Media Strategies (WMS) research programme director Nitesh Patel said: "Across all regions consumer appetite for browsing the internet, social media, apps, games and consuming rich media content like video and music on their mobile phones shows no sign of abating."

"Therefore, in these markets the challenge remains driving mobile media growth through casual data tariffs or service orientated pricing, particularly as low priced smartphones become increasingly available."

Strategy Analytics executive director of apps and media David MacQueen said: "Mobile is becoming a core part of the digital advertising mix, accounting for around 14% of digital ad revenue in 2013."

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"Advertiser spending on mobile phones, mainly smartphones, will continue to catch up with consumer mobile media usage as the growing momentum behind programmatic buying simplifies ad-buying within mobile media."

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