Spending on mobile Internet ads grows

Spending on advertisements delivered through mobile Internet will reach a record high of $500 million globally this year, rising to nearly $2 billion per annum by 2014, according to a new report from industry analysts Juniper Research.

Local analysts agree that a looming shift favouring the mobile phone as a marketing platform will have immediate implications for the Kenyan advertising market, which is currently dominated by advertising formats such as newspapers, radio, television and outdoor.

“The mobile (phone) is already emerging as the most intimate means for companies to communicate with their customers. In this market, mobiles already cover more people than the other advertising outlets, making it a logical choice for marketers in coming years,” said Mr Kevin Mburu, the CEO of Jumuika, an SMS advertising start-up.

The Juniper research shows that the mobile phone’s ability to offer instant measurement and precise response rates is making it an increasingly attractive option for brands seeking to demonstrate their levels of engagement with consumers.

Converged campaigns
The firm predicts the total value of advertising spend on mobile phones is expected to rise from just over $1.4 billion in 2009 to $6 billion in 2014, but warns that despite the increasing popularity of mobile advertising, most campaigns are ad hoc and there are very few converged campaigns across all platforms.

In particular, Juniper expects spending on mobile advertising to rise, correlating with growing consumer adoption of mobile Internet services.

In its Mobile Advertising 2009 report, Juniper observes that in many markets where fixed Internet access is limited, mobile phones have the dominant means of accessing the Internet. The report cites the example of India, where mobile accounts for nearly 90 per cent of all the country’s Internet users in 2008.

“The fact that mobiles are far more personal than home computers... means that brands can build up detailed profiles of user responses and plan follow up campaigns accordingly,” said Windsor Holden of Juniper.

“Popular mobile Internet sites are now attracting levels of usage that provide a strong case for advertising and sponsorship options,” he said.

Juniper says continuing operator transition from offering just voice services to a more open model that includes provision of data services has meant that mobile Internet usage has surged worldwide.