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Forecast: Mobile to reach $19 billion by 2012
Consumers can expect to see many more advertisements on their mobiles in the coming years and marketers can look forward to a more engaged - and buying - consumer. According to a recent eMarketer forecast, mobile marketing will reach more than $19 billion globally by 2012.
In 2007, mobile marketing reached just under $3 billion. The majority of the increase in spending will be through SMS or MMS messaging campaigns.
Text messaging is expected to remain the highest ad placement for marketers because of emerging markets in Asia and India which do not support video, display and other mobile campaigns. Messaging is expected to account for more than $14 billion of the total $19 billion spent on mobile campaigns by 2012. Messaging campaigns accounted for $2.5 billion in mobile ad revenues in 2007. Text-based ads have a response rate of more than 10%.
In the US, a larger portion of the mobile spend will be through 3G networks, utilizing video and display ads. This is because many handsets are being priced affordably for the American consumer. With the advent of cheaper mobile plans and more inclusive plan offerings, mobile is set to explode in the US.
Through 2012, the US is expected to lead in mobile ad spending but as we move closer to 2015, the Asian market is poised to take more control of the mobile spend.
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