Growth of UK Mobile Ad Spend
Growth of UK Mobile Ad Spend
The IAB (Internet Advertising Bureau) has been working with PwC (PricewaterhouseCoopers) since 1997 to survey the value of the online advertising market. Their figures have become the industry standard for measuring advertising spend. 2008 was the first year that IAB and PwC surveyed the UK mobile market Ad spend.
2008:
The research found that in 2008 UK Mobile ad spent accounted for £28.6 Million. This was a year on year (YOY) growth by +99.2% (2008 vs 2007).
IAB and PwC forecasted further growth in mobile advertising with decline in traditional media in 2008.
2009:
In 2009 things started getting interesting as even after UK’s GDP dives to – 6% YOY in Q2 2009, UK showed the fastest growth in smartphone market, with 24 % of the UK using smartphones was a YOY growth by +70% (2009 vs 2008). 2009 saw the biggest decline in overall ad spend since records began.
The research found that in 2009 UK Mobile ad spent accounted for £37.6 Million despite worst year on year record for advertising. This was a YOY growth by +32.2% (2009 vs 2008) (like for like).
“Despite the tough economic climate in 2009, we have seen many brands spending on mobile for the first time indicating the growing importance of this channel in reaching a large engaged consumer audience with the right message in the right place and at the right time” – Ed Laws, Director, Yahoo! mobile marketplace, EMEA.
2009 gave a positive indications for 2010 and still plenty of room for growth.
2010:
In 2010 UK had a mobile revolution with smartphone growth by 58%. With more engaging adverts, Geo-Location and brands building their mobile strategies. Mobile ad spent in 2010 accounted for £83 Million. This was a YOY growth by +115.9% (2010 vs 2009) (like for like).
Alex Kozloff (Mobile Manager, IAB UK) predicted that “2011 is the last chance brands have to do mobile before they are too late.”
2011:
With 5.5million mobile internet users in 2011 and 24% out of them buying via mobile, mobile advertising turned out to be an essential platform for marketing. Mobile ad spent in 2011 surpassing all the forecasted numbers accounted for £203.2 Million. This was a YOY growth by +157% (2011 vs 2010) (like for like).
There is not much change in the breakdown (%) when we compare 2011 and 2010. Since 2010 advertisers have given more emphasis on mobile search adverts as 13.4% of paid search clicks came from mobile. Larry Page (CEO,Google, 13/10/11) said that “We’re also seeing a huge positive revenue impact from mobile, which has grown 2.5 times in the last 12 months to a run rate of over $2.5 billion.”
2012:
In 2012 UK’s Digital ad spend which includes Online, Mobile and Tablet all together accounted for £5.416bn which was an increase of £607m (+12%) YOY. Out of the total digital ad spend, Mobile ad spend was £526m, which was a YOY growth of 148% (2011 vs 2012 like for like)
The Total mobile ad spend (£526m) breakdown showed similar figures of that of 2011. This stability of breakdown suggest that the advertisers had found a formula for an effective mobile advertising campaign.
H1 – 2013:
In the first half of 2013 the total digital ad spend has reached £3.014bn, this is 17.5% increment compared to first half of 2012. Total mobile ad spend in H1 – 2012 was £188.1m. In H1 – 2013 it has already reached £429.2m which is a YOY growth of 127% (H1 – 2012 vs H1 – 2013)
Mobile ad spend is now 14% of the total digital ad spend. It is predicted that Mobile to reach nearly £1 billion and 16.5% of digital ad spending this year in the UK. (Source)
The growth in mobile advertising spend in the UK shows no signs of abating, and should represent nearly one-quarter of display spending and more than one-fifth of search by 2014, according to estimates from media investment management firm GroupM. (Source)
Methodology used for this survey:
- Display figures are not adjusted to account for organisations that have not participated
- The display figures are drawn up on the basis of site declaration and have not been not verified
- Search figures are estimated through modelling and industry estimates
- Total advertising revenue is reported on a gross basis
- Only media spend reported to ensure fair comparison to other media including display ads such as banners, pre/post roll and in game, in sms/mms and search ads
- Figures do not include SMS / MMS production and delivery costs, and other mobile marketing revenues
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Exaget Team
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December 8, 2014
It’s been a hell of a day at work. Best not to mention the tube. And it looks like someone gave the kids too much sugar. Slouched on the sofa, G&T in hand, there’s just one thing you want to do. Chillax with your favourite artist, Nicki Minaj. You love the song, but you haven’t yet seen her ‘Anaconda’. You wonder what it looks like. YouTube is about to show you.
But oh….the bitter disappointment. It’s the dreaded YouTube pre-roll.
Frankly, you couldn’t care less about some new dragon warfare game. You start to search frantically for those two holy words – ‘Skip Ad’. Panic sets in. You can’t find them. You may not be particularly religious, but you’re praying now. You must endure 30 excruciating, agonising seconds of what feels like medieval torture. Never has time gone by so slowly.
The YouTube pre-roll is a negative experience for the viewer. If the viewer – essentially, to an advertiser, a potential customer – feels like they are being harassed or forced to endure a piece of advertising content, then someone in the advertising and marketing world is not doing their job properly. The net result is that the potential customer is left with a negative association with the advertising brand.
Our association with the YouTube pre-roll is a negative one. However, the opposite is true with a well-produced, well-deployed audio pre-roll. Here at Exaget, we entwine broadcaster and advertiser brands into a product that really works. We leverage the emotional connection the listener has with the radio station. By downloading the radio station’s app on to their mobile, they have invited the radio station onto a device as personal as a toothbrush.
We’re currently running a brilliant example of the sensitively branded pre-roll with one of our premium broadcasters, French Radio London. When a listener opens the French Radio London app on their mobile phone or device they are greeted by the following pre-roll, which interweaves the radio station’s brand with that of their luxury advertising partner, Relais & Châteaux.
This turns the audio pre-roll into an incredibly valuable piece of advertising real estate. At this point the listener is most probably still looking at their mobile device. Not only will they engage with the accompanying visuals – in this case the understated sophistication of Relais & Châteaux’s gourmet gift boxes – they are also presented with an opportunity to interact with the brand with just a simple tap of the map icon.
The benefits are obvious to the advertiser, the broadcaster and the listener. The advertiser gets to leverage the emotional connection that the listener has with the broadcaster’s brand and output – resulting in a deeper engagement with their own brand and product. This in turn helps to establish a relationship with the consumer, increasing the likelihood of consumer-to-brand interaction, and ultimately improving the advertiser’s chances of increased sales. In this case the exclusive and opulent nature of the advertiser’s brand adds value to the broadcaster’s already premium brand. The listener is presented with a seamless, consistent, and relevant listening experience.
Your relationship with your phone is personal. Emotional. As is your relationship with the radio station you chose to listen to. Mobile in hand, radio on, headphones plugged in, you cocoon yourself in your own little world. It’s personal. Intimate even.
The new possibilities offered by interactive radio advertising allow advertisers to turn these personal, intimate moments into opportunities for engagement.
But woe betide the advertiser who abuses them.
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