The mobile advertising revenue worldwide is expected to jump 19 per cent year-over-year to $11.4 billion in 2013, according to technology research and advisory firm Gartner.
The firm projected that revenue is set to reach $24.5 billion in 2016, with mobile advertising revenue creating new opportunities for app developers, ad networks, mobile platform providers, specialty agencies and even communications service providers in certain regions.
According to Enterprise Innovation, Stephanie Baghdassarian, research director at Gartner, said that the mobile advertising market took off even faster than they expected due to an increased uptake in smartphones and tablets, as well as the merger of consumer behaviors on computers and mobile devices.
Baghdassarian said that growth in mobile advertising comes in part at the expense of print formats, especially local newspapers, which currently face much lower ad yields as a result of mobile publishing initiatives, the report added.
Gartner believes that mobile advertising will become progressively easier to segment and target, driving the growth of spending for brands and advertisers.
The firm recommended that mobile advertising should be integrated into advertisers' overall marketing campaigns in order to connect with their audience in specific, actionable ways.
Gartner believes that mobile display ad spending will grow and take over from mobile search.
He said that it will initially remain divided between in-app and mobile web (in-browser) placements -- reflecting consumer usage -- although after several years of in-app dominance, Web display spending will take over in-app display from 2015, the report added.