According to new estimates from ABI Research, mobile marketing and advertising combined will grow at an impressive 40% CAGR over the next five years, bringing the numbers substantially higher than the well under a half billion dollars spent in total in 2009.
Like most growth estimates, ABI bases its predictions on several factors including the standard growth estimates for mobile apps and the mobile Web, as well as the fact that “compared to campaigns in more traditional media, mobile marketing can be relatively inexpensive. Moreover, ads can be highly targeted and naturally paired with rich mobile content that growing numbers of consumers are accessing through smart mobile devices.”
While growth in the industry is obviously steady, the report also cautions against inhibiting factors such as fragmentation issues. “Mobile is still fragmented by the lack of standardized device platforms, networks, and web browsers, and the need for different campaign formats for different kinds of messages.”
Other inhibitors include ‘reluctant’ (mobile ad-resistant) users, limited mobile ad budgets, and a lack of experience with this emerging medium, the report suggests.