Media News - Tuesday, October 09, 2012

UK: Mobile advertising hits GBP 500m in 2012

The explosion in popularity of smartphones, tablets and the app revolution has fuelled a more than doubling in mobile advertising to GBP 500m this year – just four years after the sector struggled to attract GBP 25m. UK mobile advertising grew a staggering 132 percent in the first six months of this year to GBP 181.5m, according to the latest Internet Advertising Bureau (IAB) report conducted by PricewaterhouseCoopers. Breakneck growth is continuing in the second half – fuelled by the popularity of Apple and Google's app stores as smartphone ownership nears 60 percent of the UK's adult population – with forecasts putting UK mobile spend at as much as GBP 511m for the full year. In 2011, the IAB put mobile ad spend at GBP 203m. Mobile display and video advertising almost doubled in the first six months this year to GBP 50m, with mobile search soaring by more than 150 percent to GBP 132m. Mobile search accounts for almost three-quarters of all UK mobile ad spend. Total UK internet advertising spend rose 12.6 percent year on year in the first six months to GBP 2.59bn, comfortably on track to pass GBP 5bn for the year. The total digital display advertising market, including mobile, rose 10.6 percent in the first half to GBP 591m. One of the biggest beneficiaries of the rise of digital display advertising, albeit not on mobile, has been Facebook. Enders Analysis puts Facebook UK's full-year ad revenues at GBP 236m, a healthy 35 percent year-on-year rise. The biggest segment of the internet advertising market continues to be paid-for searches, which are dominated by Google. Spend on search advertising rose 16 percent in the first half to crack GBP 1.5bn, a 60 percent share of the overall market. (The Guardian)

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