Mobile Advertising Spending to Hit $18 Billion in 2014

Mobile advertising has become one of fastest growing markets in the tech sector.  One report after another has shown that mobile advertising spending is only going to grow and one of the most recent reports only underlines that. One of the top analysis firms in the industry, Gartner says that mobile advertising spending is going to top $18 billion by the end of 2014.

That number would be a rather significant jump from the total of $13.1 billion that the industry reached in 2013. Gartner said that the market is only going to continue skyrocketing to $41.9 billion by the end of 2017.  The firm says that there are a number of different formats that will see plenty of success but video spending should see the most growth.

Interestingly, the firm believes that there will be a bit of a slowdown of growth for the next few years. Gartner says that there will simply be too much ad inventory and that supply will exceed demand. Stephanie Baghdassarian, research director at Gartner, says that eventually mobile advertising will pick up again and, “from 2015 to 2017, growth will be fuelled by improved market conditions, such as provider consolidation, measurement standardization and new targeting technologies, along with a sustained interest in the mobile medium from advertisers.”

Mobile display ads are the single biggest category of ads and will remain so according to Gartner. The category is expected to change and evolve to in-app display ads towards the end of the forecast period. When talking about parts of the world where mobile advertising is having the biggest effect and the strongest growth, Gartner said that North America has long held both crowns. The industry analysis firm added that the United States and Canada are also the places where mobile advertising is the most matured and most well developed. It makes sense when that is taken into account that mobile spending is growing the fastest in those areas.