Mobile Advertising is Expected to Reach 5B in 2015

Whether you are aware of it or not, the iPad and its clones have created a revolution. They are changing the using habits of computer users. Tablets are expected to outsell desktop computers as soon as the end of this year. Coupled with the rapid rise of smartphone sales, it can potentially result in millions upon millions of additional mobile searches, sites visits and transactions done on mobile devices.

Google’s dominance is still grabbing most of the internet advertising dollars. But with over 100,000 apps and growing, even Google is trying to get a foot in the door of the applications market. Google is also doing some very interesting research on the user habits of mobile connectivity.

Google reported that display ads on Youtube increased by 50% from 2009 to 2010, selling 2 billion views per week. It is well known that Youtube is one of the most accessible and viewed mobile app.

At the end of 2010, Google surveyed 5,000 US adult users of smartphones and published some interesting statistics:

–          Activity on smartphones:

  • 81% said they use it for browsing
  • 77% did a general search. General search includes general information, search for local establishments and specific retail information
  • 68% were using different apps and
  • 48% use it for video viewing

–          Search patterns:

Action orients searches: The first on the list are the big search engines. The next most visited sites are the social media sites, after that comes retail and video content. It’s amazing to find that 90% of respondents indicated that their search resulted in direct action. One in four recommended a product to others as a result of a search.

Local information: 95% of users said they use their smartphone to locate local establishments. 88% of those follow it with action within a day. 75% say they contact an establishment as a result of the search, 61% made a phone call and 59% physically traveled to the business.

Purchase driven searches: 80% said they use their smartphone to assist them in shopping, in activities such as looking up competitive pricings. 75% of those end up making a purchase in the store.

That is why the U.S. is expected to grow to $5 billion spent on mobile advertising by 2015, according to research done by Smaato/mobileSquard. They point out that more than half of smartphone users in the U.S. did not yet see an ad on their phones yet – that is approximately 160 million users in the United States alone. Of those who did see an ad, 59% clicked but didn’t buy, 16% clicked and completed the purchase on a computer and 25% clicked and made a purchase. With the growing popularity of tablets and smartphones these number have a lot of room to grow.

Sources:

About Basil Puglisi

@BasilPuglisi is a Content Contributor and the Chairman of the Board for Digital Ethos. Basil C. Puglisi is also the Digital Marketing Manager for PMG Interactive. As the Digital Marketing Manager he provides oversight and support to Digital Campaigns, from Website Development to Search and Social Reach.

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  1. […] for sharing this bit of history with me.) Today mobile marketing is quickly growing into a multi-billion dollar industry, but most of it is still focused on banner ads, SMS ads, and, well, more banner […]

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