Mobile ad spending up significantly for the year

Mobile ad spending up significantly for the yearMobile ad spending has seen a significant jump this year. According to reports, mobile ad spending is up 145 percent thus far in the year. The remarkable increase is being credited to smartphones and tablets, which are smaller handheld Internet accessible devices.

Reports say that more consumers are accessing the Internet via smartphones and tablets. The end result has been an increase of ad hits. So finally, advertisers are finally catching up. Spending on mobile advertising hit the $3 billion mark for the first half of the year. The Interactive Advertising Bureau points out that total were just $1.2 billion for the same time period a year ago.

The new figures represent a growth of 145 percent, and make a remarkable contribution to the historic $20.1 billion that Internet advertisers brought in overall during that period. The Wall Street Journal reported that the amazing growth of mobile ads clearly demonstrates that advertisers are becoming more convinced that there is money to be made in the area where consumers are spending more time online using smaller devices, such as tablets and smartphones.

With the smaller devices, more people are accessing the Internet while commuting on subways, trains, and buses, and while waiting for appointments in offices. Besides technological hurdles that have been overcome, many experts felt people were aggravated or displeased at the thought of ads on smartphone and tablet screens. This belief has been referred to as “ad annoyance.”

With concerns of ad annoyance being brushed to the side, and the jury still out on the thoughts regarding the possibility of displeasure at the ads, many felt that the mobile market was too large to ignore. The large company, Unilever, has opted to devote 10 percent of its entire global advertising budget to mobile ads during 2013. Unilever is known for such brands as Dove soap and Vaseline.

In the end, social networking sites such as Facebook, Twitter, and Google are overjoyed about the prospects. For this much money to be spent on mobile advertising, they must expect to reap the rewards of increased sales. Most experts agree that it will be interesting to see how much profit this advertising gathers for the businesses. One company, Mondelez, which sells Trident gum and Nabisco cookies, has said that its mobile ad campaign for Nilla Wafers, which was solely on Facebook, increased sales by 13 percent for the product. Therefore, those ad dollars was money well spent.

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About the author

Rob is a analyst and reporter covering stocks and business news.