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Mobile ad spend doubles to take digital spend over £5bn

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Big increases in adspend across the digital market place show advertisers are making good use of new technology. Rising smart phone ownership is driving a huge increase in mobile advertising. With close to two thirds of the UK population owning an internet-enabled mobile phone in December 2012, according to comScore, increasing numbers of advertisers are buying integrated campaigns across online and mobile rather than regarding mobile as an afterthought. And with 4G networks rolling out across the UK and tablets being predicted to outsell laptops throughout 2013 this is set to rise further and faster, and include richer and more engaging content.

Little wonder then that mobile ad spend saw a huge increase from 2011 to 2012, 148% in fact, from £203m to £526m according to the 2012 Internet Advertising Bureau (IAB) Digital Ad Spend Report, conducted by auditors PriceWaterhouseCoopers.

This in turn helped drive digital ad spend as a whole up over the £5bn mark to a record £5.42bn last year, the increase in mobile accounting for more than half the total increase.

There were impressive growth figures across the mobile spectrum, with video advertising spend rising 46% and an incredible 1,601% increase in mobile video advertising. Admittedly total spend in this area still only amounted to a relatively modest £13m but there is no doubt that with the uptake of 4G networks and internet enabled phones and tablets this is the area to watch.

Elsewhere across the spectrum, digital display advertising spend grew in line with the market as a whole at 12.4%, spend on classifieds shrunk relatively growing by only 6.3% year on year, spend on social media grew by 24% and by far the largest sector – paid for search marketing – grew by 14% taking its share of the total market to nearly 60% with a total ad spend of an impressive £3.17bn.

 


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