Mobile advertising boosted by Smartphone ownership

UK digital adspend hits record 6 month high of £3bn

New research from the Internet Advertising Bureau has seen a massive growth in the amount companies are spending on online advertising, as users spend more time online browsing from their smartphones.

In the first six months of 2013, the report discovered UK web users were spending an average of one in every 12 waking minutes online, leading to advertisers spending a record £3bn targeting them with marketing messages.

As smartphone usage has increased, and browsing speeds have improved thanks to the rollout of 4G, companies are focusing more of their advertising budgets at online users.

The £3bn total shows an increase of 17.5% from the £2.61bn spend in the first six months of 2012. Mobile advertising grew like for like by a massive 127%, up to £429m, with mobile now accounting for 14.1% of all digital advertising spend.

Tim Elkington, Director of Research and Strategy at the IAB said: “Nothing illustrates the internet as an entertainment platform better than the fact that over one in five minutes online is accounted for by entertainment, and that advertisers spent almost 1,300% more on mobile video than a year ago. With smartphone penetration crossing two thirds of the UK population, and the successful rollout of 4G, 2013 could be the year when advertising spend on mobile crosses the £1bn threshold.”

The biggest sector to spend on mobile advertising was consumer goods, almost doubling its share from 2012, up to 26.8% from 14.5% in 2012.

Of the £3bn spent on internet advertising, online display ads grew by 23%, whilst video advertising grew 86% to £135m, boosted by faster 4G data speeds. Social media advertising rose by more than 50% to £242m, whilst paid for search advertising rose 19% to £1.81bn.

Mobile's percentage of paid for advertising grew 101%, to £271m, reinforcing the view that the mobile platform has grown past being for communications and entertainment to become a valid, genuine platform for retail.