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Mobile video & TV to help drive huge mobile revenue surge

Mobile video and TV will help spending on consumer mobile media services consumed via the handset rise from just above $236 Billion in 2013 to approach $380 Billion by 2018, according to a new forecast from Strategy Analytics, Global Mobile Media Forecast: 2001-2018.

Mobile operators will remain the main beneficiaries with spending on mobile data accounting for over $254 Billion, or 67.3 percent, of total mobile media revenue by 2018. Strong mobile advertising revenue growth will eclipse consumer spend on premium content, rising at just below 20% CAGR over the next five years.

In advanced mobile media regions, like North America and Western Europe, demand for 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.  Nitesh Patel, Director of the Wireless Media Strategies (WMS) research program notes, “Across all regions consumer appetite for browsing the internet, social media, apps, games and consuming rich media content like video and music on their mobile phones shows no sign of abating. However, we expect less mature mobile markets, where a large portion of users have basic or feature phones and remain served by 2G networks, to exhibit the strongest growth in mobile media revenue. Therefore, in these markets the challenge remains driving mobile media growth through casual data tariffs or service orientated pricing, particularly as low priced smartphones become increasingly available.”

Overall, mobile advertising will become an increasingly important revenue stream, more than doubling to approach $41 Billion by 2018, and accounting for nearly 11% percent of mobile media revenue.

David MacQueen, Executive Director of Apps and Media at Strategy Analytics adds, “Mobile is becoming a core part of the digital advertising mix, accounting for around 14% of digital ad revenue in 2013. Advertiser spending on mobile phones, mainly smartphones, will continue to catch up with consumer mobile media usage as the growing momentum behind programmatic buying simplifies ad-buying within mobile media. Importantly, as more brands and retailers optimize the mobile commerce experience an increasing proportion of mobile users will use their phone to make purchases, enhancing the benefit of mobile advertising.”

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