Expenditure on mobile advertising in the UK exceeded market expectation in 2008 to reach a total of £28.6 million, according to a study by the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC).
In the first study of its kind in the UK, the IAB’s mobile adspend research shows that investment in mobile advertising grew at a faster rate than predicted as more UK brands invested in the medium due to its exceptional targeting, immediacy and return on investment. The study also shows that mobile adspend bucked all market trends, doubling in size on a like for like basis in 2008, increasing by 99.2% year on year.
The research shows that paid-for-search advertising on the mobile internet accounts for £14.4 million, 50.2% of all mobile advertising spend, while mobile display advertising – which includes banners, text links, tenancies pre/post roll and in-game – accounted for £14.2 million in 2008, 49.8% of all mobile advertising spend.
Jon Mew, head of mobile at the Internet Advertising Bureau, comments: “This study is a UK first and means the IAB can accurately prove and track how much marketers are spending on mobile. The sector is in its infancy but is considerably bigger than the market was expecting. Thanks to these landmark figures we know the real value of the mobile advertising industry, and will now be able to chart the medium’s growth with confidence.”
Guy Phillipson, chief executive of the IAB, adds: “Over the past 12 months the marketplace has been buzzing with anticipation about this exciting new channel. Now is the perfect time for brands to dip their toes in the water, to see for themselves how effective and complementary mobile advertising can be. The IAB is dedicating considerable resource to educating marketers and agencies so they can optimise their campaigns as mobile becomes an essential part of all communications plans.”
Eva Berg-Winters of PricewaterhouseCoopers, said: "Mobile advertising has shown impressive, steady growth throughout 2008 in an overall declining advertising market. The way has been paved by online advertising, which combined with the rapid uptake in mobile internet usage, will ensure it becomes a very powerful advertising medium over the next few years."
The IAB officially widened its remit to include mobile internet advertising in July 2008, when the five main UK networks – 3, O2, Orange, T-Mobile and Vodafone – became members. In the coming weeks the trade body will launch a ‘How To’ guide on briefing, planning and executing campaigns for marketers and is currently conducting research into the effectiveness of mobile advertising, with the results due in early June. More information can be found at www.iabuk.net/mobileadvertising.
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