US mobile ad spend to hit $1.1 billion in 2011 as revenue rises by 48 percent

It doesn't take a genius to work out that the total spent on mobile advertising is going to rise in the coming years given the increasing prevalence of smartphones.

Predicting the exact figures, however, is a little more vexing, making eMarketer's assertion that ad spend in the US is set to rise by 48 percent next year more valuable.

As published in the site's report 'Mobile Advertising and Marketing: Past the Tipping Point', total spend will hit $1.1 billion in 2011.

Competitive spirit

"Apple and Google have introduced new devices and ad inventory into the marketplace," said principal analyst and report author Noah Elkin.

"In so doing, they have given mobile advertising new legitimacy, reflected in increased spending estimates from most research firms and investment banks."

It's an assent the site believes will continue for the following three years at the least, with US ad spend topping $2.5 billion by 2014.

By its own admission, eMarkter's figures are somewhat conservative.

Other analysts have placed the bar much higher Credit Suisse estimating total ad spend will surpass $6.5 billion by 2014 although Yankee Group projections put 2011's figure at a more restrained $324 million.

Development derby

Regardless of the exact figures, however, it's Elkin's belief that the sheer range of ads and ad types mobile now supports is the major reason spending will increase.

"These shifts reflect the evolution of mobile from a channel associated primarily with direct response campaigns to one marketers will increasingly use for branding purposes," Elkin said.

"In short, the continued development of devices, browsers and mobile networks, combined with the availability and marketer awareness of richer ad units, will significantly enhance how marketers will be able to use mobile to interact and engage with consumers."

The full report can be purchased from eMarketer for $695.

[source: eMarketer]