Strategy Analytics, Inc, the company which provides advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies, have predicted that by 2018, spending on consumer mobile media services will have approached $380 billion in their 2001-2018 global mobile media forecast. That's up from a little more than $236 billion last year and includes everything from handset browsing and apps, to mobile music, video and TV. The forecast states that mobile operators will (of course) remain the primary beneficiaries of the boom, with spending on mobile data estimated to account for almost 70% of total mobile media revenue. It's also been forecast that strong mobile advertising revenue growth will eventually eclipse consumer spend on premium content within the next five years, and that mobile advertising will become an increasingly important revenue stream, accounting for nearly 11% percent of mobile media revenue by 2018 ($41 billion).
Strategy Analytics have predicted that by 2018, spending on consumer mobile media services will have approached $380 billion
In regions with advanced mobile media use and the availability of high-speed 4G wireless mobile web access (such as North America and Western Europe) the ever-increasing demand for mobile apps, games, web browsing and social media will continue to drive mobile data adoption. This isn't surprising when you consider the install base of media-centric smartphones in countries like the UK and the USA, where it's estimated that almost 61% of the population currently own a smartphone. That number will only increase in the next 4 years.
Mobile Media Users by Application
Nitesh Patel, director of the wireless media strategies research program, notes that "Across all regions, consumer appetite for browsing the internet, social media, apps, games and consuming rich media content like video and music on their mobile phones shows no sign of abating.” He does admit, however that they expect “Less mature mobile markets, where a large portion of users have basic or feature phones and remain served by 2G networks, to exhibit the strongest growth in mobile media revenue.” In these markets Patel feels the challenge will be to drive growth through “Casual data tariffs or service orientated pricing, particularly as low priced smartphones become increasingly available."
"Mobile is becoming a core part of the digital advertising mix, accounting for around 14% of digital ad revenue in 2013.” David MacQueen
David MacQueen, the executive director of apps and media at Strategy Analytics, adds that "Mobile is becoming a core part of the digital advertising mix, accounting for around 14% of digital ad revenue in 2013.” He says that forecast shows that “Advertiser spending on smartphones, will continue to catch up with consumer mobile media usage as the growing momentum behind programmatic buying simplifies ad-buying within mobile media.” He also believes that as more brands and retailers optimise their own mobile commerce offerings, “An increasing proportion of mobile users will use their phone to make purchases, enhancing the benefit of mobile advertising."
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Benjamin Hiorns is a freelance writer and musician from the UK who couldn't agree more with this forecast. Indeed, he spent £900 on music equipment via his smartphone last night!