Spending on mobile advertising is seeing a surge coincident with the adoption of smartphones. The 650M smartphones (including iOS and Android) only account for 15% of the mobile phone market, yet generate almost 80% of all network traffic. And the 3 million tablets sold to date generate 5x the amount of traffic a smartphone does.
This new report from eMarketer projects mobile ad spending to grow from $750M in 2010 to $4.4B in 2015. Messaging based formats lead the pack of mobile advertising options this year and will grow steadily over the period at a 14% Compound Annual Growth Rate to $600M. In 2010, ad spend by the other types was $28.5M for video, $185M for search based, and $202M for banners & rich media. These other categories will increase rapidly with video CAGR 69% to $400M, search CAGR 57% $1.8B and banner and rich media CAGR 51% to $1.6B by 2015.
From the report:
Advertisers will spend nearly $1.23 billion on mobile advertising this year in the US, up from $743 million last year, according to a new forecast by eMarketer. By 2015, the US mobile advertising market is set to reach almost $4.4 billion. This includes spending on display ads (such as banners, rich media and video), search and messaging-based advertising, and covers ads viewed on both mobile phones and tablets.
Cisco estimates that by 2015 that mobile data traffic will increase by 92% CAGR (in essence doubling every year) to 6.3 exabytes per year. Two thirds of mobile traffic by then will be video. Mobile connected tablets will account for as much traffic (245 Pb per month) in 2015 as the entire global mobile network in 2010. M2M traffic by 2015 will be 295 Pb per month. The average smartphone will generate 1.3Gb of traffic per month.