A new report from Juniper Research predicts that in-app advertising spend across all mobile devices will reach $7.1 billion by 2015. That’s an increase of $4.7B from 2012 figures. The additional spend on in-app ads will result from greater use of rich media in ads related to greater app usage.
“Mobile advertising gives marketers the chance to reach consumers on a more personal level than any other type of advertising,” according to report author Charlotte Miller. “Creating immersive and entertaining experiences to attract the attention of the consumer is essential for marketers wanting to take advantage of the massive increase in app usage.”
Earlier this year, another Juniper Research report, “Mobile Apps Stores: Future Business Models & Ecosystem Analysis 2012-2016‘”predicted that mobile app downloads will top 66 billion annually by 2016. That forecast is for twice the number (31B) downloaded in 2011.
Anyone deciding whether to develop an app for a smartphone or tablet might be interested to know that Juniper Research expects that growth in downloads to be primarily driven by smartphones, but that by 2016 nearly one in four downloads will occur on a tablet.
Dr. Windsor Holden, who authored the download study report, provided some insight into the marketing and CRM benefits of mobile apps.
“Consumers are now demanding 24/7 access to services – retail, financial, information, entertainment – wherever they are. As a result, brands that wish to remain competitive have turned to apps as part of an integrated multichannel distribution system: they have become a critical mechanism to increase engagement and reduce churn.”