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BizReport : Mobile Marketing : October 12, 2016

UK: Mobile phone obsession drives ad spend to record levels

The effect of British consumers' obsession with their smartphones on advertising budgets has been revealed in the latest Internet Advertising Bureau UK / PwC Digital Adspend report.

by Helen Leggatt

More than 8 in 10 Brits check their smartphone within an hour of waking up, according to recent YouGov data, and among younger users (18-34s) 86% check their device within the first half hour. Overall, UK adults spend nearly half (46%) of their Internet time on a mobile, compared to 41% on a desktop or laptop (via UKOM).

Women have been found to spend more of their Internet time on their mobiles than men (52%) and recent research from Worldpay found that more women than men in the UK use their mobile to shop.

Consumers' obsession with their mobile devices has seen mobile advertising budgets rise significantly in the first half of 2016 compared to the same period last year - up 56% to £1.7billion. Five years ago, four pence in every UK Pound spent on Internet advertising went on mobile, that figure now stands at 36 pence in every UK Pound, according to the Internet Advertising Bureau UK / PwC Digital Adspend report.

"The wider range of activities and longer time people spend on them is why companies are raising mobile budgets," said the IAB UK's Chief Strategy Officer, Tim Elkington. "It's also a more effective way for advertisers to deliver more relevant and immediate offers such as those related to certain locations or time of day."

Spend on mobile video advertising has also seen a sharp rise - up 129% to £298 million in the first half of 2016 - due to consumers' increasing reliance on their smartphones for entertainment and information. Social media spend, too, has been increasingly diverted to mobile with the report stating that 80% of social media advertising is now allocated to smartphones with the remainder going to computer and tablet campaigns.

Tags: advertising, budgets, mobile, social media, video advertising

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