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Survey reveals huge increase in mobile advertising spend

Total advertising spend via mobile devices rose substantially in 2011, according to a new survey.

The annual survey, by the Internet Advertising Bureau (IAB) and Pricewaterhouse Coopers (PwC), revealed that total advertising outlay in 2011 stood at £203.2 million, a rise of 157% on the previous year.

A significant finding in the survey was the increasing part played by the retail sector in mobile advertising. Outlay by this group rose from just 5.5% of total mobile advertising spend in 2010 to 12.3% in 2011.

The top investor in mobile advertising however, according to the survey, was the entertainment and media sector, which accounted for 23.2% of all spend, followed in second place by telecoms, which stood at 14.9%.

Meanwhile, spend by the fast-moving consumer goods (FMCG) sector, which covers individual grocery products, rose from 11.8% to 14.4%, whilst the technology sector also increased its share of the total advertising spend by 180% to 8.4%.

The IAB explains these trends partly as a response to the increasing use of mobile devices among consumers for mobile commerce (m-commerce). 24% of consumers were identified in research carried out by the IAB in January as having purchased a product or service via a mobile device.

Advertisers, it says, also continue to be enticed by apps and mobile social media usage.

The IAB additionally points to the improved technical quality of advertisements on mobile devices, as well as to enhanced measurement methods.

The survey found that search accounted for the largest share of mobile advertising spend, at £134.3 million, or 66%. Display spend, meanwhile, totalled £59.4 million.

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