Mobile ad spend to hit $105bn by 2019


Global advertising spend to account for 44% of total digital ad spend

Annual global advertising spend on mobile devices is expected to reach $105 billion by 2019, up from an estimated $51 billion this year, a new study has shown.

Juniper Research has stated that this increase in advertising spend is in large partly attributable to an attitude shift amongst brands and retailers who now use mobile as a core channel for consumer engagement. The study from Juniper also argues that the ability of smartphones to deliver targeted, personalised and timely advertising – allied to the media-stacking trends amongst consumers – means that mobile advertising offers both high visibility and high response rates.

The research also observes a marked uplift in ad spend within the Far East & China region, fuelled by the dramatic adoption of m-commerce retail activity within China, and claims that the region is expected to account for 43% of global mobile advertising spend in 2019.

However, the research highlighted increasing concerns around consumer privacy, with advertisers keen to exploit Big Data analytics to gain an insight into consumer online and offline behaviour, including purchasing patterns.

It observed that when the device user’s information is shared for advertising purposes, without their prior consent, consumers may feel a violation of their rights has occurred. It therefore stressed the need for consumers to be ‘opted-in’ to any data sharing to avoid both potential litigation and adverse publicity for the brands.

The study also showed that programmatic advertising (which is the Real Time Bidding of advertising space) will drive the growth in digital advertising as the technology advances over the coming years.

Meanwhile, video advertising is expected to see progressive growth due to the higher engagement rates of the medium.


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