Market Data

Mobile Advertising. Keep Up, Stay Flexible.

According to Frost & Sullivan the Australian online advertising market grew 16% in 2013, reaching $3.74 billion.  Significantly outperforming the overall market last year were mobile advertising and online video, the fastest growing segments in the Australian online advertising market.  Both are both expected to continue to outperform the market over the next five years.

According to the report, The Australian Online Advertising Market: Year End Review and Market Outlook, this growth is driven by high consumer adoption of smartphones and tablets, and growing media agency acceptance of mobile channels.

These trends are certain to continue into 2014. In fact Mobile Advertising is forecast to grow at almost 40% annually between 2013 and 2018, by which time advertising served on tablets is predicted to dominate the market.  According to Frost & Sullivan 70% of overall mobile advertising expenditure will be served on tablet devices, whilst smartphones will make up the other 30% in 2018.

Given the proliferation of mini-tablets and phablets in 2013, not to mention other smart screens of various size, shape and purpose it remains to be seen whether the revenue split will be so clear cut in five years time.  2018 could see a far more fragmented revenue split for mobile advertising across a variety of screens, wearable devices and other yet-to-be-seen innovations in device hardware.  IDC scaled back its tablets forecasts last year in light of emerging categories like wearable tech.  Although the tablet market is nearing maturity there is the inevitable lag while the media industry translates device ownership to advertising products and sells the opportunity into brands and marketers.  But the lags shrinks every year and the pace of change leaves advertisers no choice but to keep up.

Five years ago no-one had heard of the iPad, so it’s likely we will be talking about something completely different in 2018.   In fact I would be surprised if we weren’t!

The moral of the story?  Get in there now, keep up and stay flexible.  Change is just around the corner.

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