Mobile advertising grew nearly 65% globally last year, with Asia, North America leading the way
IAB calls on “industry to coalesce on standards and guidelines to build even more momentum for mobile marketing around the world”
The IAB threw a little cold water on those who are setting off alarms about the effect ad blockers might have on mobile advertising. It reported today that the size of the global market for mobile advertising grew nearly 65 percent last year.
Of note is the lack for growth being shown in the Middle East and Latin America. It may be one reason the IAB put out a call for worldwide standards and guidelines.
Here is the IAB’s announcement:
NEW YORK & BRUSSELS – August 13, 2015 — The Interactive Advertising Bureau (IAB) and its Mobile Marketing Center of Excellence, IAB Europe, and IHS Technology revealed today their global figures for mobile advertising revenue which surged 64.8 percent to $31.9bn (€23.9bn) in 2014 from $19.3bn (€14.6bn) in 2013, driven by continued shifts in consumer usage patterns and industry innovations.
- North America: 44.9% ($14.318m / €10,781m)
- Asia-Pacific: 36.5% ($11.627m / €8,754m)
- Europe: 16.6% ($5.306m / €3,995m)
- Middle East and Africa: 1.2% ($379m / €286m)
- Latin America: 0.8% ($239m / €180m)
Mobile display again showed the highest growth at 88.1 percent, overtaking search as the dominant segment. Display represented 47.4 percent of the total global mobile advertising revenue in 2014 at $15.1bn (€11.4bn). Mobile search followed, up 55.2 percent, taking a 46.1 percent share at $14.7bn (€11bn) Messaging grew 13 percent, as users continued to migrate from operator-owned messaging services to app-based messaging platforms, with a 6.6 percent share at $2.1bn (€1.6bn).
Growth year-over-year was led by North America, which saw a 76.8 percent leap over the 2013 figures. All regions grew by more than 50 percent:
- North America – 76.8%
- Middle-East and Africa – 68.5%
- Latin America – 66.1%
- Europe – 58.6%
- Asia-Pacific – 54.5%
“Mobile devices are at the center of consumers’ lives across the globe and these numbers reflect brands’ increasing recognition that this medium holds great power,” said Anna Bager, Senior Vice President, IAB and General Manager, IAB Mobile Marketing Center and Digital Video Centers of Excellence. “Now is the time for the industry to coalesce on standards and guidelines to build even more momentum for mobile marketing around the world.”
“The Global Mobile Advertising revenue numbers demonstrate the strength of mobile both in Europe and globally and help us to understand the scale and opportunity it brings to digital as a marketing platform,” said Townsend Feehan, CEO, IAB Europe. “It’s important that advertisers, agencies and publishers fully understand consumer behavior as the differences between the devices diminish and the potential for engagement with digital content grows. IAB Europe continues to invest in research, education and training and the development of business standards to support digital growth.”
“Mobile yet again proves to be key to the continual evolution of the online advertising market. These numbers have been underpinned by the industry coming together to collaborate and create improvements to mobile advertising infrastructure,” said Daniel Knapp, Director Advertising Research, IHS. “Technology is now better explained, measurement is improving, and targeting is better aligned with other media to help advertisers reach and engage with their audiences.”
To download the report please visit www.iab.net/globalmobile2015.
Definition of Mobile Advertising Formats:
- Display: Any display advertising viewed or read on a mobile phone including rich media and video advertising. This could be browser-based as well as in-app.
- Search: Advertising appearing on specific word requests on search engines, viewed on a mobile device.
- SMS/MMS: 3rd party ads in SMS and outbound SMS only – this includes advertising either within the body copy of an SMS / MMS message, or outbound messaging.
Market Sizing Methodology:
Market size is gross, defined as after discounts, before agency commissions. Global market sizing and format split is based on reported data by local IABs, and a statistical and econometric model. Reported data has been harmonised to adjust for discounts and agency commissions. Modelled data is based on variables such as smartphone penetration, 3G subscriptions, messaging volume. The model has been refined based on benchmarking variables such as ad spend per capita, mobile subscriptions and 3G/4G penetration as well as through interviews with key players across the mobile advertising ecosystem. Model also takes into account typology of mobile ad markets in terms of maturity and format proliferation.
All data expressed in constant 2013 USD. Conversions into EUR based on 2013 USD-EUR foreign exchange rates. Constant currency is used to eliminate exchange rate effects on growth rates.