Strategy Analytics this week issued a new report in which the firm predicts that spending on consumer mobile media services will rise from $161 billion in 2012 to $200 billion by 2017.
Mobile media spending refers to content consumed via the handset. including handset browsing, mobile applications, mobile games, mobile music, mobile video, mobile TV, ringtones, wallpapers and alerts.
The industry projections are contained in the new Strategy Analytics report titled “Global Mobile Media Forecast: 2001-2017.”
All told, mobile access to web browsing, games, apps and social media services will continue to drive mobile data adoption, enabled by the growing installed base of media-centric smartphones and flexible data pricing.
“Going forward the challenge will be driving mobile media growth in less mature mobile data markets, where a large portion of users have basic or feature phones, remain served by 2G networks, but where demand for information, content and entertainment on mobile devices will be strong,” says Nitesh Patel, Director of the Wireless Media Strategies research program. “Casual data tariffs or service orientated pricing will be a requirement in these markets, particularly as low priced smartphones become increasingly available.”
Fittingly, the increasing absorption of mobile media is opening doors for mobile monetization. Mobile advertising will become an increasingly important revenue stream, more than tripling to exceed $42B by 2017, and accounting for 18 percent of total mobile media expenditure.
“Mobile is becoming a core part of digital advertising with companies like Google making it easier for advertisers to deliver ads to mobile devices,” adds David Kerr, Vice President at Strategy Analytics. “Facebook also reported 30 percent of its digital ad revenue derived from mobile, which underlines advertiser demand to test and experiment with well-targeted mobile inventory provided by popular social networks.”