Mobile Ad Revenue to Hit $18 Billion This Year


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As established consumer markets shift from traditional PC to mobile devices, advertisers have been scrambling to catch up and evolve along with mobile technology. Now that marketers are beginning to get a handle on mobile advertising, mobile ad revenues are now set to climb significantly in the coming years.

Market research firm Gartner this week released a report predicting that mobile ad revenue in 2014 will climb to $18 billion. That represents a 37% increase from the $13.1 billion in mobile ad revenue taken in globally in 2013. Gartner also predicts that the industry will more than double by 2017, hitting an estimated $41.9 billion during that year.

"Over the next few years, growth in mobile advertising spending will slow due to ad space inventory supply growing faster than demand, as the number of mobile websites and applications increases faster than brands request ad space on mobile device screens," said Stephanie Baghdassarian, research director at Gartner. "However, from 2015 to 2017, growth will be fueled by improved market conditions, such as provider consolidation, measurement standardization and new targeting technologies, along with a sustained interest in the mobile medium from advertisers."

Gartner believes that display ads will remain the largest portion of mobile ad revenue for the next few years. Mobile video ads, however, will see huge growth as advertisers seek to leverage the growing tablet install base. Also, location is predicted to play a larger role in future mobile advertising, making mobile ads a better proposition for local businesses.