Mobile Advertising To Increase 11% in ’11

Inplace #2

swing_smallADOTAS – The Global Markets Research Division from Deustche Bank published a report detailing a projected 11% increase in mobile advertising expenditure for 2011. That is a decrease of 3% from the 14% increase in mobile ad spending in 2010. The report was based on a survey of 31 major media buyers representing $5 billion in online ad spending.

“As has been the theme over the past few years, online advertising would continue to grow, gaining share from traditional media,” Jeetil Patel the lead analysts said in the report sent to investors late Monday. According to these analyst, traditional print media appears to be “most vulnerable” from the reallocation of advertising budgets to online and digital media. And the Deutsche team projected that mobile advertising would likely become a “billion dollar segment” in 2011, more than doubling its 2010 numbers.

The total projected spending for online advertising will reach $28.5 billion in the U.S. Eventually, banner advertising “could likely lose some share to emerging ad formats such as mobile, social, local (primarily group buying) and online video. We expect these emerging ad formats to grow the fastest, albeit on a smaller base,” the report stated.

“The influence of Facebook, group buying and mobile should increase sizably this year,” and “online video/ads should gain further prominence this year as well.” The analyst’s top stocks for the year include Google, IAC, comScore, MediaMind, and GSI Commerce.