Mobile Services To Drive Advertising Revenue In Emerging Markets

    March 5, 2009

As market penetration rates for mobile services continue to increase in emerging markets, advertisers are expected to significantly increase their spending on third-screen ad campaigns targeted towards users of mobile data services, according to a new report by Pyramid Research.

The report examined mobile advertising and revenue potential in the emerging markets of Brazil, China, Indonesia, Mexico, Romania, Russia, South Africa, and Turkey.

Pyramid forecasts that mobile advertising will increase mobile data service revenues by 10 percent within the next five years, as mobile adoption rates grow globally. Mobile data services are on track to make up more than 33 percent of operators service revenues worldwide by 2013.

Jan ten Sythoff, Pyramid Research
Jan ten Sythoff

The expected growth in mobile data subscriptions will make mobile advertising a solid growth area even with an expected overall drop in advertising spending over the next two years, according to Jan Ten Sythoff, manager of Mobile Content at Pyramid Research and co-author of the report.

"Fixed-line Internet and mobile platforms will take market share away from traditional formats in the short term and grow in line with economic recovery from 2011 onward," says Sythoff.

"Mobile and Internet platforms combined will account for roughly 12 percent of overall advertising spending in emerging markets and 30 percent in developed countries by 2013."

The emerging markets where mobile advertising is gaining ground will account for more than 35 percent of mobile subscriptions globally by 2013. "South Africa and Indonesia stand out as markets where the mobile sector’s share of overall advertising spending will surpass that of the Internet medium as early as 2009," said Sythoff.