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BizReport : Research archives : May 05, 2009

Report: Mobile ad spend slows

Over the next few years more marketers will turn to mobile advertising, but the growth rate is expected to quickly begin slowing. According to a recent report from Interpublic's Magna unit in the United State mobile marketers are expected to spend $229 million in the mobile space in 2009, a 26% increase year over year (YoY).

by Kristina Knight

However, over the next few years the growth rate will not be as high.

The forecast predicted in 2008 that the mobile ad spend would increase by nearly 50%. The downgraded forecast now predicts that by 2011 mobile marketers will spend about $409 million in the space. In a related report, Magna's researchers predict a similar slowing in online video. This slower growth trend is expected to last through 2010 and then another acceleration will hit the cycle.

Why the slowdown now? Researchers pin the strange growth rates on the mobile audience. Although consumers are quickly logging on to the mobile web, many are turning to apps rather than ads, leaving marketers scrambling to change their mobile philosophy. However, marketers have been fast to turn and are expected to make up the slow growth of 2009 over the next few years.

Tags: Interpublic, mobile advertising forecast, mobile forecast, mobile marketing

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