Mobile ad rev expected to double – again

The first-ever mobile ad survey by the Interactive Advertising Bureau of Canada shows revenues grew to $2.7 million in 2007.

Mobile advertising revenue more than doubled from 2006 to 2007, according to the Interactive Advertising Bureau (IAB) of Canada. In the first-ever Canadian mobile ad survey, data shows that profits grew from $1.1 million in 2006 to $2.7 million in 2007, and they are expected to almost double again in 2008 to $5.2 million.

Standard SMS advertising programs generated 75% of the total Canadian mobile advertising revenue in 2007, or $1.996 million. The remainder of revenue is divided across the following categories: mobile content (8%), mobile display advertising (5%), mobile applications (5%) and premium SMS (3%). All forms advertising are growing rapidly year over year, according to the IAB.

‘The results show not only the rapid growth of the market to date, but beyond that, the fact that mobile marketing is poised to move from one-off experimental campaigns to becoming an important part of the overall interactive marketing mix,’ says Peter Vaz, VP director, digital communications, M2 Universal Digital and VP of IAB Canada’s emerging platforms council.

While mobile ad revenue is growing exponentially compared to other major media – 143% between 2006 and 2007, compared to the 5% growth of all major media and online’s 38% increase over the same time period – this is to be expected, given mobile’s relatively small and nascent ad revenue base. But the medium is not without its challenges; survey respondents cited the small size of an internet-enabled audience and the revenue-building restrictions imposed by the current carrier/provider business model as the main obstacles going forward.

View the full Canadian Mobile Advertising Report here.