Mobile media market to smash the $200bn barrier by 2017

June 12th, 2013, 21:11 Posted By: wraggster

Powered as increasing number of consumers buy content from their phones.
A new Strategy Analytics report finds that the global mobile media market spend will pass $200 billion by 2017, which is a rise $161 billion last year. The huge sum excludes tablet-based spending and only accounts for buys from handsets, with apps, games, music, video and more to drive the revenue.
Operators are concerned as an increasing number of consumers use over-the-top services like WhatsApp and Skype, thus restricting revenues from text messaging and calls.
The report notes that data revenue accounted for 62.5 per cent ($100bn) of the total mobile media spend in 2012 and operators will still profit. However, today's Juniper findings suggest networks will lose 50 per cent of data traffic to wi-fi this year.
The main challenge is expected to be in emerging markets where 2G is still prominent, limiting the access to mobile entertainment and content. Casual tariffs and flexible pricing packages are said to be the key as low priced smartphones roll out in the developing regions.
Meanwhile, mobile ads are said to become a more key revenue stream, tripling to pass $42bn by 2017.
David Kerr, VP at Strategy Analytics, said: "Mobile is becoming a core part of digital advertising with companies like Google making it easier for advertisers to deliver ads to mobile devices.
"Facebook also reported 30 per cent of its digital ad revenue derived from mobile, which underlines advertiser demand to test and experiment with well-targeted mobile inventory provided by popular social networks."

http://www.mobile-ent.biz/news/read/...by-2017/021579

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