Mobile advertising to reach £1 billion in the UK
25th June 2013
Mobile advertising spend in the UK will hit £1 billion in 2013 according to revised estimates from emarketer. That’s up by 90% on the 2012 figure of £526 million.
And the forecast is for even more spending in 2014, with a further increase of 23.4% expected as smartphone use and investment in mobile-friendly internet advertising access continues.
Search will account for more than half of all investments in online and mobile advertising through 2016. Advertisers are taking particular advantage of the opportunities mobile search offers. Display ad spending will total one-fourth of digital ad expenditures in 2013, but its share is growing rapidly thanks to massive increases in video advertising.
Video’s share of digital ad spending will grow dramatically as marketers develop more advertising content for the expanding UK digital video audience. eMarketer projects that the number of internet users who watch video content online or on mobile at least once per month will rise from 34.4 million to 40 million between 2013 and 2017.
During that same time period, video will increase from 4% to 12.4% of the UK’s digital ad market and more than triple in ad dollars by 2016.
The strength of the digital ad market is reflected in the amount advertisers are investing to reach individual UK residents on online and mobile platforms. In 2013, on average, £127 ($202) will be spent on digital advertising for each UK internet user. This is more than four times the worldwide average and higher than the amount spent by advertisers in the US.
Total media ad spending is forecast to reach £13.98 billion ($22.19 billion) this year, up 3.7% from last year. The UK economy might still be ailing after a dismal last few years, and this has hindered potential growth of the ad market. But the advertising sector is stronger than other industries in the UK, boosted by substantial gains in online and mobile ad investments. The digital ad industry is the largest single component of total media spending, surpassing even TV.
Despite continued uncertainty about the European economy, advertising investments saw a slight bump in growth in 2012 due to the London Summer Olympics and the UEFA European football championships. Similar increases are expected in 2014 for the World Cup and Winter Olympics when total media ad expenditures are projected to reach £14.67 billion ($23.29 billion). eMarketer forecasts that this year’s growth rate will match last year’s rate of increase and will spike to 5% next year.
For more information, visit emarketer.