It's Now Clear That Mobile Is The Growth Engine For All Digital Advertising

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Friday, December 27, 2013

Mobile Insights is delivered first thing every morning exclusively to BI Intelligence subscribers. Editor's note: We will not publish charts of the day or Insights on January 1. Happy holidays from the team at Business Insider Intelligence! BIGGER BUDGETS: Berg Insight tells us in a new report that mobile advertising is growing at a rapid rate. By 2018, mobile will account for 20% of the overall global digital ad spend, and 6% of all ad spending. In total, global mobile ad spend is expected to grow at an average of 26% each year over the next five years. That means significantly bigger budgets for mobile advertisers to work with. U.S. PATTERNS: The IAB put out its third quarter numbers for total U.S. digital ad spending: $10.7 billion, marking 15% year-over-year growth. Much of that growth is from mobile. There are already clear signs that mobile ad spending growth is accelerating even as desktop ad growth flattens. Desktop ad growth was a measly 2% this year, according to eMarketer. Meanwhile, we at BI Intelligence predicted mobile ad spending in the U.S. would grow at 103% this year. eMarketer says mobile's share of digital spending wil be 31% next year, and roughly 50% by 2018. (IAB) In other news... Apple users absolutely destroyed Android users in terms of Christmas shopping. IBM reports that iOS devices, including iPads, accounted for nearly 83% of mobile e-commerce sales compared to just 16% for Android devices. (Apple Insider) The Wireless Association has developed a website, KnowMyApp.org, to help consumers learn more about a specific app's data usage. (PC World) MORE THAN A FAD: Plain Vanilla Games just raised a hefty $22 million in funding on the strength of its popular, new game app QuizUp. In less than two months, QuizUp has generated over five million downloads. Gaming is very conducive to these types of growth curves, but the more important factor is longevity. Can QuizUp become the next Candy Crush? Or will it be erased like Draw Something? Its newest investors hope this social trivia game becomes more than just another fad. (TechCrunch) Massive South Korean Messaging app KakaoTalk, is used by 93% of the smartphone user population in South Korea. KakaoTalk believes it will generate upwards of $200 million in revenue for 2013. (Bloomberg) QUOTE OF THE DAY - A LOST YEAR?: "All in, 2013 was an embarrassment for the entire tech industry and the engine that powers it —Silicon Valley. Innovation was replaced by financial engineering, mergers and acquisitions, and evasion of regulations. Not a single breakthrough product was unveiled ..." (Christopher Mims of Quartz) Even some celebrities are still hanging on to their soon-to-be-obsolete BlackBerry devices. (GigaOm)