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Juniper: The Future’s Bright, The Future’s Mobile

juniper.gifJuniper Research has released a new study which estimates that by 2014, total adspend on mobile services will exceed $6 billion annually. This represents a 34% annual growth rate.

They also have a very interesting analysis of which mobile channels will benefit from this spend over the coming years.

Although the overall level of spending on advertising is currently falling due to global economic conditions, Juniper feels that this may in fact represent an opportunity for mobile advertising. Early results from mobile have been very positive, and during bad times “brands will increasingly be seeking to transfer spend to targeted, measurable media.”

Also, it must be pointed out that even if mobile advertising reached $6 billion in 2014, this would be just about 1.2% of total advertising expenditures.

While it is always interesting to get the latest forecasts from major research houses, to me the most intriguing part of the report was the predicted distribution of ad spend among the many possible mobile channels. (note: see below for Juniper’s definition of each mobile channel.)


Some of the key points raised by the report include:

  • The traditional dominance of SMS ads is lessening due to both mobile internet and on-portal ads. In fact, Jupiter predicts that in 2009 ads on mobile internet will exceed SMS advertising.
  • The share represented by mobile internet advertising will grow over the next couple of years, but peak in 2011.
  • One channel that is expected to grow very rapidly is “Personal Messaging advertising”, which Juniper defines as advertising that is included with person-to-person SMS, MMS or IM (instant messaging). They predict this channel will grow at an annual rate over 60%.
  • Two other mobile channels that are expected to increase their share. Idle-screen advertising, currently less than 1% of the market, will grow as more operators and vendors deploy idle screen solutions to offer personalised advertising. And highly targeted, personalized MMS campaigns will also grow due to their high ROI.

The full report, Mobile Advertising: Delivery Channels, Business Models & Forecasts 2009-2014 can be purchased from Juniper here.

Mobile Distribution Channels
(source: Juniper Research white paper)

• SMS Advertising (A2P Advertising); SMS is a globally available and accepted wireless service. It is a mechanism for transmitting short text messages of up to 160 characters (and 7 bit per character) to and from a wireless device or an IP address

• MMS Advertising (A2P Advertising); allows subscribers to send and receive multimedia content such as images, audio and video apart from regular text on their mobile phones

• P2P Messaging Advertising; consumers are increasingly being offered the opportunity to receive advertisements within their personal messages

• In-Content Download Advertising; brands are perceiving that other content services, such as games and ringtones, could provide valuable inventory for advertising services

• On-Portal Advertising; As the network operators are at the heart of the mobile entertainment value chain, advertisers are naturally keen to ally with them

• Mobile Internet Advertising; there are essentially three forms of advertising upon the mobile internet: classifieds, display adverts and search engine advertising

• Idle-Screen Advertising; during idle periods handsets are almost always in close proximity to their owners, thus they represent a further opportunity for advertisers, and

• Mobile TV and Video Advertising: the opportunity for advertising within mobile TV channels mirrors that in the traditional TV market, in that ads can be placed before, during and after TV programmes.

18.06.2009    Tags: , ,
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