MOBILE AD SPENDING

Emarketer forecasts more than 1.1 billion will be spent on mobile ads in 2011. Much of this is attributable to the way Google and Apple have redefined the mobile devices and their advertising markets.

Google and Apple have legitimatized mobile advertising with their nifty new mobile devices and this has resulted in an increase in spending by by both investment banks and research firms.

Emarketer predicts that mobile ad spending this year will reach 743 million(a 79% increase from 2009 spending). The previous forecast for 2010 spending ranged from 242 million to 6 billion.

Emarketer also predicts that growth in display spending(media, banners and video) will increase exponentially while spending on messaging will drop significantly.

This indicates that the market will shift from direct response campaigns to branding campaigns. This will significantly enhance interaction between advertisers and mobile users.

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