Mobile Ad Spend to Increase Tenfold in Five Years

Mobile Ad Spend to Increase Tenfold in Five Years

UK research firm claims advertising will be worth $894m per year by 2015; end-user revenues to hit $11 billion.

Global advertising spend on mobile games is set to increase tenfold in the next five years, according to a report.

The Mobile Games whitepaper, published by UK firm Juniper Research, says that by 2015 mobile ad spend will have risen to $894 million per year, compared to just $87 million last year.

Author Daniel Ashdown cites Rovio’s runaway success with Angry Birds as proof. While the game’s iOS debut saw huge numbers of downloads, Ashdown is more interested in the game’s release on GetJar and Android, where the game was released for free with in-game advertising.

“Users get a great game for free, but advertisers get significant product/brand exposure,” he says. “The same is true of mobile games as marketing tools.”

While advertising spend is set to grow rapidly, end-user revenues – shorthand for proceeds from traditional, paid-for apps and those funded by in-app purchasing – will remain the most lucrative. Juniper expects total end-user revenues to surpass $11 billion a year by 2015, double the $6 billion the sector grossed in 2009.