Global mobile advertising revenues top $83bn in 2016

10 Jul 2017  |  Scarlett O'Donoghue 
Global mobile advertising revenues top $83bn in 2016

Global mobile advertising growth increased 60.5% to $83bn (£64.5bn) in 2016 from $52bn (£40.4bn) in 2015, according to new figures from the IAB and IHS Markit.

Mobile display continues to drive investment with the highest growth at 64.3%, whilst mobile search lagged slightly behind, up 61.1%. Messaging grew by 11.2% as users continue to migrate from operator-owned messaging services to app-based messaging platforms.

Meanwhile, display increased its share to 54% of all mobile spend globally at $45bn (£35bn), while search took a 42.8% share at $36bn (£28bn). Messaging’s share continues to decline, however, with a 3.1% share accounting for $2.6bn (£2bn).

“The global mobile ad market has not only benefitted from the rapid smartphone adoption in emerging markets but also better ad targeting capabilities in mature markets”, said Qingzhen Chen, senior analyst, technology, media and telecom, IHS Markit.

“An influx of investments and partnerships for premium content and data collaboration between broadcasters and leading online platforms were the key drivers for the strong mobile growth. The Western markets were driven by several key markets but dominated by global players, whereas in APAC local players accounted for most of the growth”.

Kia Ling Teoh, analyst, technology, media and telecom, IHS Markit, said continued improvements in adtech has also helped fuel the growth.

"Standardisation of measurement has helped to better capture consumer interaction with mobile ads as media consumption increasingly shifts to mobile devices," Ling Teoh added.

"This is particularly important in emerging markets where, for many people, mobile is the first and only means of accessing the internet."

In terms of share by region, North America accounted for 46% of the total global figure, followed by Asia-Pacific (33%), Europe (19%), Middle East & Africa (0.8%) and Latin America (0.7%).

Year-on-year growth was also led by North America (73%), followed by Latin America (57%), Asia-Pacific (52%), Europe (48%) and Middle East & Africa (46%).

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