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The Rise of Mobile Advertising

Last updated 6 years ago

Do you ever use your smartphone to look up a local business?  If so, have you noticed the various ads as you surf the Internet through your phone?  You may not think mobile advertising is quite as common because not everyone has a smartphone.  Guess again.  For this year alone, businesses will spend over $1 billion (specifically eMarketer estimates $1.23 billion) on mobile advertising in the U.S..  Although this is the first year mobile advertising has reached a $1 billion spend, this pace will most likely continue into the near future.  Take a look at the chart below from eMarketer, which was released in September 2011:

This chart essentially shows the expected growth for mobile advertising over the next few years.  For example, for 2012, mobile ad spend is projected to (which includes display ads, search ads, and mobile video ads) be $1.8 billion.

Besides the noteworthy $1 billion record for this year, there is another record set for 2011.  Compared to 2010, mobile advertising has increased 65%!  So why is there such growth in mobile advertising?  Companies are realizing the increased number of mobile users who access the Internet to search for products and services.  Here are some key stats from last year’s study called Mobile Access 2010” from Pew Internet & American Life Project:

  • Two in five adults (40%) engaged in at least one of these activities on a mobile phone: use the Internet, email, or instant message.
  • Among 18-29 year old cell phone owners, 65% accessed the Internet on their phone.
  • Among 30-49 year old cell phone owners, 43% accessed the Internet through their phone.

For 2011, eMarketer has made the following predictions:

  • 38% of mobile users will have a smartphone (Angotti).
  • 41% of mobile users will access the Internet at least once each month.
  • The most popular mobile ad segment will be mobile video ads (companies are anticipated to spend $57.6 million of the $1.23 billion on this segment).

What do these statistics reveal to your business?  It’s a simple take-away here: more smartphones -> more Internet usage -> more mobile advertising spending.  It’s also safe to say that people using their smartphones are probably closer to making a purchasing decision.  Think about yourself.  When you use your smartphone to look up a product/service online, you don’t have a lot of space to view the text and images, so you’re probably on the go and almost ready to make a purchase.

What do you think about the upward trend in mobile advertising?  Is mobile advertising a part of your company’s online marketing plan for next year?

About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore.  His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies.  He manages over $1.4 million in yearly marketing budgets and has worked with local businesses, agencies and the US government.  Give him a call at (877)655-3438 to schedule a free consultation.

These research statistics came from and


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