Here’s the reasoning. The company says that US has over 300 million active mobile subscriptions, of which, almost one-third use their mobile phone to browse. This number is only expected to grow in the next few years. Because of the high number of mobile users, the average mobile advertising campaign spend is between $75,000 – 100,000, which is much higher than in other countries.
And the report contends that the mobile advertising market is is still young and has not fully matured. Smaato says that mobile has yet to penetrate over 50% of the US mobile population in terms of advertising. As smartphone usage increases, interact rates will increase and advertisers will be more willing to shell out ad dollars.
While it’s still difficult to know just how huge mobile advertising will become, we do know that the market seems to be growing at a fast rate as technology giants like Apple and Google throw their hats in the ring via acquisitions. Steady increases in the use of smartphones, new innovations in mobile ad formats and other factors are all contributing to market that is growing like gangbusters.
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Authors: Leena Rao