The Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) have just released the first independent study of the UK mobile advertising.

They found that despite the current economic crisis and the widely reported reduction in advertising, mobile ad spend actually doubled in 2008 compared to 2007.

Investment in mobile advertising grew at a faster rate than predicted as more UK brands invested in the medium due to its exceptional targeting, immediacy and return on investment.

The total figure for expenditure on mobile advertising in the UK reached a total of £28.6 million, an increase of 99.2% year on year.

The study further broke down this total:

• paid-for-search advertising on the mobile internet accounts for £14.4 million, 50.2% of all mobile advertising spend,

• mobile display advertising – which includes banners, text links, tenancies pre/post roll and in-game – accounted for £14.2 million in 2008, 49.8% of all mobile advertising spend.

Jon Mew, head of mobile at the Internet Advertising Bureau, comments: “This study is a UK first and means the IAB can accurately prove and track how much marketers are spending on mobile. The sector is in its infancy but is considerably bigger than the market was expecting. Thanks to these landmark figures we know the real value of the mobile advertising industry, and will now be able to chart the medium’s growth with confidence.”

Guy Phillipson, chief executive of the IAB, adds: “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 also identified a number of key growth factors for mobile advertising, including:

• Mobile internet usage grew from 8.6m in Dec 2007 to over 11m in Dec 2008.
• People on unlimited data plans (unlimited access to the mobile internet as part of their contract) grew by a massive 109% in 2008.
• Mobile offers a great user experience – according to the Orange Exposure 2 study, 70% of mobile media users find innovative ad formats actively appealing.
• The 3G iPhone launched and has transformed usage. iPhone users for example are around 7 times more likely than average to browse on their phones daily for news and info.
• More and more media agencies in the UK are appointing dedicated heads of mobile, charged with working full time on the medium to educate teams and promote the channel.
• Operators, agencies, associations, brands, technologists are working to educate the market place, and as knowledge grows it is becoming much easier to plan and buy successful mobile advertising campaigns.