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UK mobile ad spend expected to hit £1bn mark in 2013

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30th Jun 2013
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UK mobile advertising in set to reach nearly £1 billion in 2013, up 90% from the £526m spent last year, according to new figures from eMarketer.

According to the market research firm, mobile ad spending will help drive digital ad growth throughout the forecast period as advertisers increasingly invest in mobile search and display formats to engage the UK's increasingly multiscreen user base.

Overall, eMarketer forecasts digital spend, which includes online and mobile formats, will grow 12% between 2012 and 2013 to reach £6.1bn this year. This is an upward revision of this year's expected mobile and digital ad spending totals with total media spending projections also raised due to the faster-than-expected growth in digital.

Additionally, video's share of digital ad spending will grow dramatically with predictions that the number of internet users who watch video content online or on mobile at least once per month will rise from 34.4m to 40m between 2013 and 2017.

The strength of the digital ad market is reflected in the amount advertisers are investing to reach individual UK residents on online and mobile platforms, said eMarketer. In 2013, on average, £127 will be spent on digital advertising for each UK internet user. This is more than four times the worldwide average and higher than the amount spent by advertisers in the US.

Meanwhile, eMarketer also recently released figures into mcommerce and found shopping on mobile devices is expected to take 15% of UK retail ecommerce sales, helping drive the total digital sales to 11.5% of UK total retail sales this year, compared with 10.2% in 2012.

Nonmobile online retail sales will continue rising robustly in the coming years, said eMarketer, even as a significant portion of digital's growth will come from mobile devices, as shopping on smartphones and tablets reaches record levels-driving much of the incremental growth in the market.

Factored into eMarketer's figures for UK retail ecommerce and mcommerce sales are the multiple ways in which mobile devices drive ecommerce sales. Growing use of smartphones and tablets as shopping and product research devices give consumers reasons to shift spending from stores to the internet, while additionally encouraging incremental purchases that stem from impulse buying, said the report.

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