Tuesday, October 6, 2009

Online advertising bigger than TV!!! How will mobile advertising change the game?

Excerpts from UK´s Advertising Bureau (IAB) & PricewaterhouseCoopers, TechCrunch and Kelsey Group (see Kelsey´s figure on the top)

This week for the first time ever online advertising passed TV advertising in the UK. It is thought that the UK is the world's first major economy to pass the media milestone.
This event was predicted last year but the difficult time on advertising overall have made the prediction look doubtful.

However a record £1.75 billion sterling - nearly a quarter of the total ad market - was spent online in the first half of this year, compared with £1.64 billion for TV. The study, carried out by the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers, showed overall advertising fell by 16% in the period as firms slashed costs in the recession.
Online advertising is classified as email campaigns, classified adverts, display ads and search engine websites such as Google. The IAB data showed that 60% of the online advertising was spent on search engines, with 22% on online classified ads.
The milestone is not really that important but clearly marks the transition over the last 10 years from printed and TV advertising to the online media. There are 2 big questions remaining: what is the effectiveness of this new shift on advertising towards online or better said digital? Has this maybe be a result of firms cutting cost towards cheaper advertising (online) or just to more effective advertising? Will talk about this on a future post
The second question and closer to my heart (and company :-) is how will mobile advertising shift the current picture

Let´s take a look at recent predictions reported on Techcrunch
The rising market share of smartphones (please note that this is more true in the US than in Europe so far.
,mobile browsing has grown through the roof within the last year, With that in mind, mobile advertising promises to be a huge growth area.
For more data and analysis on smartphones I recommend reading
Read post from JT Klepp (COO Storyz in Australia) on latest analysis on smartphone and handset trends
The Kelsey Group, a market research firm, projects that the mobile advertising market will balloon from $160 million in 2008 to $3.1 billion in 2013.
The amount here is not that relevant but clearly there is a large growth potential in mobile advertising in four years, quoting TechCrunch
"...perhaps even ten to 20 times bigger than it is today. Where will all of that mobile ad money go to? Here I think the Kelsey group is more on target. It projects that mobile search will go from 24 percent of the total mobile ad market last year to 73 percent of the much larger pie in 2013, according to a recent research note put out by Citi analyst Mark Mahaney, which is where I’m getting all of these numbers. Display ads are projected to go from 13 percent of the total to 18 percent, while SMS ads will decline as a percentage from 63 percent to 9 percent (see charts). So once again it looks like search is going to be the big winner...."
So I guess the odds are that Google will be a big winner here. Room for more, well at mmCHANNEL we clearly believe so and our work on the advergaming field together with our partner Unkasoft is just one proof of this
The game has just started
Good night and good luck :-)

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