What: IT research firm Gartner said it expects global mobile advertising spending to reach US $18 billion this year
Why it matters: Mobile ad spending will drive growth mostly through video and ad types like search and maps.
In a new report on the mobile ad market analyst Gartner expects global mobile advertising spending to reach US $18 billion this year. By 2017 it’s projecting the market will have sized up to be worth US $41.9 billion. The estimated global mobile ad spending for the 2013 was $13.1 billion.
In terms of mobile ad types, video will show the highest growth — with the category being driven by tablets and growth in tablet ownership — but display formats are still expected to make up most of the revenue.
Gartner also expects that display category will shift to mobile web display after several years of higher growth in in-app display. Although it added that this shift is taking longer than expected, owing to the use of HTML5 tools in mobile website development “taking longer to impact the market”.
Other mobile ad types
Other mobile ad types are expected to grow like search/map ad types, which Gartner expects to benefit from increased use of location data gathered from mobile users. It also expects that more local advertisers get involved in these mobile ad types.
Map ads are expected to grow due to the increased use of location data gathered from mobile users opting in to location services or proactively checking in to the places they visit via of apps such as Foursquare and Pinterest.
In Latin America mobile advertising will grow most in large markets such as Brazil and Mexico with growth rates that will exceed the worldwide average, as smartphone adoption continues to grow.