Mobile Advertising Market in Australia Is Booming

By 2018, overall mobile advertising budgets are expected to reach $682 million

According to Frost & Sullivan’s new research report entitled “Australian Online General and Mobile Advertising Market 2013,” the mobile advertising market is predicted to grow at a rate of 39% (CAGR) from 2013 to 2018. The report states that expenditure will reach $682 million by 2018 and 70% of that figure will be spent on tablets, while 30% will be spent on smartphones ads. Of the companies surveyed, 50% plan to increase their mobile advertising budget significantly and 79% said it would be more than 10% of the prior year expenditures.

Fuelled by strong growth in smartphones, but especially tablets, there has been very high growth in mobile advertising expenditure over the past year. For both brands and media agencies the growth has been an important part of the overall advertising strategy. “In the last 12 months, the Australian mobile advertising market grew strongly across all industries.” Senior Research Manager at Australia & New Zealand, Frost & Sullivan, Phil Harpur comments, “Banking & finance and automotive continue to lead the market, through retail is also seeing strong adoption.”

“Local mobile ad networks, such as Big Mobile, and global mobile ad networks such as InMobi and AdMob are expanding their business models within Australia. This momentum is expected to continue into 2014; assisted by the advancement of mobile-specific advertising campaigns, optimized for both smartphones and tablets,” Harpur said. “Rich media mobile ad inventory is growing as a proportion of overall mobile ad inventory and has experienced upward pricing pressure.

“The majority of new inventory is now being produced using rich media. The mobile video advertising market remains underdeveloped, though there is evidence of innovation such as video mobile ads embedded within banner ads. Mobile search advertising continues to grow strongly in line with the growing usage of mobile search, which has increased substantially over the past few years,” said Harpur.

However, the rate for advertizing has remained stable. Harpur states, “The high mobile usage of both smartphone and tablets has led to an oversupply of inventory spots. A major challenge for the industry moving forward is how to drive value in mobile and tablet advertising in light of the burgeoning supply of inventory via better targeting techniques.” The report is an integral part of Frost & Sullivan’s Australian Digital Media program.

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