Mobile ad sales increased from $0.6 billion in 2010 to $3.4 billion in 2012, according to new research from Mintel. The research firm identified two primary factors driving up business investments in mobile web advertising: high-percentage ad exposure and rapid growth in mobile retail.
And because smartphone and tablet sales are expected to keep increasing in the coming years, sales growth is likely to maintain its current pace, resulting in continued value growth for mobile ads.
Mintel’s study found that three in every four U.S. mobile Web users looked at a mobile ad in the last month. Those numbers are even higher among younger populations — 91 percent of individuals age 18 to 24 and 83 percent of those in the 25-34 range said they’d recently seen an ad.
According to a July 2013 press release, one senior analyst from Mintel said that mobile’s status as a still-developing technology should deliver strong growth through at least 2015, with the possibility of additional acceleration as the audience for mobile technology grows.
Mintel, which has 40 years of experience producing research and market intelligence reports, published its findings in its May 2013 U.S. Mobile Advertising report.
Embracing Mobile Ads in Many Forms
Mobile-ad sales growth is expected to be driven by the rise in popularity of multiple modes of advertising. Local mobile-ad sales figure to play a significant role — Mintel expects U.S. sales for local mobile advertising to surpass $2 billion in 2014, up from $1 billion in 2012.
Mobile couponing is also projected to be a big mobile-ad sales driver. According to Mintel’s research, one in six adults — and more than 20 percent of adults from households earning more than $100,000 a year — said they have redeemed a mobile coupon in the past.
And Mintel suggests that a huge ad-sales market could be created by offering free mobile Web content in exchange for viewing ads. This strategy is already common on many apps, particularly those that offer free and paid versions, and consumers seem fine with it — Mintel found that 28 percent of mobile Web users will view ads in exchange for free usage.
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