Frost and Sullivan: Australian mobile advertising market to reach $682 mil in 2018

SYDNEY, AUSTRALIA: Australia's mobile advertising market is predicted to grow strongly at a CAGR of 39 percent from 2013 to 2018, with expenditure reaching $682 million in 2018. By that time, 70 percent of overall mobile advertising spend will be served on tablets, whilst 30 percent of adverts are expected to be served on smartphones.

Frost and Sullivan's new report, Australian Online General and Mobile Advertising Market 2013, reveals that 50 percent of companies plan to increase their mobile advertising budget substantially compared to the prior year. 79 percent reported intentions to increase mobile advertising expenditure by more than 10 percent.

There has been very high growth in mobile advertising expenditure in the last 12 months, fuelled by strong growth in consumer media consumption on smartphones, but especially tablets. It is now increasingly being seen as an important part of the overall advertising strategy of both media agencies and brands.

Phil Harpur, senior research manager, Australia and New Zealand, Frost and Sullivan, said: "Rich media mobile ad inventory is growing as a proportion of overall mobile ad inventory and has experienced upward pricing pressure. The majority of new inventory is now being produced using rich media.

"The mobile video advertising market remains underdeveloped, though there is evidence of innovation such as video mobile ads embedded within banner ads. Mobile search advertising continues to grow strongly in line with the growing usage of mobile search, which has increased substantially over the past few years."