A new study from ABI Research estimates that global mobile advertising revenues will amount to $1.9 billion this year. That sounds like a lot of money, but compared to the $60 to $70 billion spent annually on broadcast television advertising in the U.S. alone, the figure is “insignificant,” the research firm said in a press statement. “However the clear benefits of well-executed mobile advertising are so compelling that over the next five years this market is set to enjoy double-digit growth rates.”
There are good reasons to be bullish about mobile. Unlike any other channel, mobile allows advertisers to get close to the end-user and profoundly influence the customer relationship. What’s more, mobile is the foundation of targeted and relevant advertising campaigns that build on the clues users leave such as the sites they visit, the content they view and the purchases they make. And if these advantages don’t turn advertisers on to mobile, then the click-through rates will. ABI reports a typical click-through rate for regular internet banner ads is about 0.2%, while the rate for mobile banner ads is in the range of 2 -3%. ABI research senior analyst Ken Hyers said performance will go down over time as the novelty wears off. “But for now, it represents sensational performance.”
Source: ABI Research
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