12 May 2009

Mobile Internet use and ad spend booming

With the introduction of smartphones such as the Apple iPhone, Google's Android and BlackBerry, mobile phone internet usage has seen a dramatic increase since 2007. According to research firm Neilsen, the mobile internet market has seen a 74% increase between February 2007 and February 2009.

Since the 2007 launch of the iPhone, which has an estimated audience of 5.1 million users in the U.S., there has been an undeniable effect on mobile media adoption throughout the world. Neilsen's findings also indicated that when compared to typical subscribers, iPhone users are 4 times more likely to use mobile internet and 6 times more likely to use mobile apps. Apple reported that they processed over 1 billion app downloads in just 9 months which shows an overwhelming support of iPhone technology. The availability of unlimited data packages has also spurred on smartphone sales by allowing mobile phone users access to internet on the go.

In reaction to the growth of the mobile internet market, brands are investing more than ever in mobile advertising. According to a study carried out by the Internet Advertising Bureau (IAB) and PricewaerhouseCoopers (PwC), in 2008, spend on mobile advertising reached a total of £28.6million in the UK which exceeded expectations. Paid for search advertising on mobile internet accounts for 50.2% (£14.4million) of all mobile advertising spend, while display advertising accounted for 49.8% (£14.2million) of all mobile advertising spend.

The chief executive of the IAB, Guy Phillipson said: "Over the past 12 months the marketplace has been buzzing with anticipation about this exciting new channel. Now is the perfect time for brands to dip their toes in the water, to see for themselves how effective and complementary mobile advertising can be. The IAB is dedicating considerable resource to educating marketers and agencies so they can optimise their campaigns as mobile becomes an essential part of all communications plans."

With the mobile internet market experiencing healthy growth, mobile internet use, and there for advertising opportunities, could reach gargantuan proportions. Therefore attracting more investment and subsequently resulting in an ever more sophisticated product - to match those swanky smartphone handsets no doubt.

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