Friday 27 May 2011

Mobile advertising up as companies follow users

 
Head of Vodacom Mobile Media says previous estimates dramatically underestimated the size of the mobile advertising industry
Published: 2011/05/27 07:04:12 AM


VODACOM , MXit and Google predict that mobile marketing and advertising spending in SA will double to R1bn by next year.


Last year, mobile advertising revenue reached about R500m.


Jason Probert, the head of Vodacom Mobile Media, said yesterday that previous estimates had dramatically underestimated the size of the mobile advertising industry. "When you take into account the entire mobile advertising ecosystem and include mobile ad networks like AdMob, operator services like Apple, mobile search and social networks like MXit, the picture is dramatically different."




Globally, mobile advertising spending is expected to grow 50% a year, from $12,6bn this year to $41,8bn by 2015.


In emerging markets including SA , mobile is the primary means to the internet. This, together with cheaper data rates and more affordable smart phones, is seen to be the main driving force of its phenomenal growth.


The country’s low internet connectivity penetration and high broadband costs would further drive consumers to mobile, the companies said.


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