For the first time mobile advertising spend has broken the billion pound barrier in a half-year period, with a growth of 52%.
At an expenditure of £1.07bn, this increase in mobile advertising spend underlines the need for a stronger understanding of how consumers use and interact with mobile devices.
The data published today by the Advertising Association and Warc Expenditure also highlights the increasing spend in digital advertising, with a 13.3% increase in overall online spend to £3.9bn. Mobile advertising accounts for 79% of this growth.
One of the dangers with the rise of mobile advertising is that the effectiveness of the medium will decrease unless it’s targeted well and is used in an inventive way to engage consumers.
Mobile is a potentially a hugely creative channel, but is also highly intrusive so getting it right is important so as not to miss the opportunity it provides to us as marketers.
This move towards mobile is ultimately driven by the need to target users where they spend most of their time. Recent research in the US shows that the average millennial spends 73% more time on their smartphones than the average adult. Multi-screen content consumption is also on the rise with a 500% increase in the last three years alone. Audiences often view content on their smartphones or tablets whilst watching TV, making mobile part of the TV experience.
Additional research from Warc’s Global Adspend Database highlights the UK as being in a leading position, with the highest mobile advertising spend in Europe. The UK has also recorded the third highest spend globally, behind the US and China.
It is predicted that overall advertising spend will break the £20bn barrier as earlier as 2016, with a 5.8% rise in 2015 and a 5.3% rise in 2016.