Spend on digital advertising has grown past the 5 billion dollars during 2012. Advertising on Apps is big buisness, infact the mobile element of this growth accounts for over 50% of the growth. That’s even more impressive against falling or stagnating Ad spend in other sectors. Mobile adverts, so often carried in apps are right there at the forefront of the advertising business.
What does this mean for apps? The exciting aspect of this growth is that it gives additional weight to the view that apps can generate significant advertising income. If even a small share of the huge advertising spend is being channelled via the app world then this should give inspiration to those looking to develop an app.
The numbers show an increase in the mobile sector of 323 million pounds in 2012. Not forgetting this is an austerity phase of economic activity adds even more weight to the significance of these figures.
In the UK the high take-up of broadband and the continuing rise of smartphones and tablet computers have helped establish this improvement in sales into the mobile sector and helping the advertising community see mobile as just as important as any other digital platform. In Britain the market has 2/3 penetration in terms of smart phone ownership. That’s a very large section of the population and gives advertises confidence that their message will be seen and heard. Further segmentation by platform naturally follows.
“Advertisers are increasingly buying integrated campaigns across online and mobile rather than regarding mobile as an afterthought,” director of research and strategy at the IAB Tim Elkington said.
And what of the future. Analysts think that when 4G is established the power and potential will leap further as speeds of delivery of data will enhance the experience for users. Better muliti- tasking, faster downloads, higher resolutions all add value to this already burgeoning sector. Here at App Developers UK we are expecting a maturation of the market as the tail begins to wag the dog. In other words the ads may become the prime motivator for the creation of an app rather than the other way around. Watch this space.