Magna Mobile Advertising Forecast – May 2009

Chris Sheldrake

MAGNA, part of Mediabrands and The Interpublic Group of Companies, has forecast that the US market for mobile advertising will grow by 36% in 2009 – rising from USD 169 million in 2008 to USD 229 million this year.

These figures are a downward revision from their forecast in the middle of last year but still pretty good nonetheless.

MAGNA believe that the prevalence of mobile subscriptions (more than 270 million at the end of 2008 according to the CTIA, the wireless industry trade association) and mobile users (more than 224 million individuals, according to Nielsen) has been the biggest catalyst to date.

The second catalyst has been increased access to the mobile web. Recent data from Comscore indicates that as of January 2009, 22 million individuals accessed the mobile web daily and 63 million monthly, up from 11 million and 37 million for each frequency during January 2008.

Thirdly and most interesting to us is that Apple’s iPhone and the company’s App Store represent a driver of growth on several levels.

One is the heightened interest among consumers, marketers and carriers alike for the core product, which results in exponentially higher levels of data (and mobile web) consumption.

In addition, the establishment of an endemic ecosystem of software developers and consumers capable of performing ‘closed-loop’ marketing creates real demand for marketing services inside of the platform.

MAGNA believe that this segment of the market will continue to expand rapidly, especially as other mobile operating system developers create competing environments to drive similar applications to a wider range of devices (see last week’s Nokia Point&Find story for example).

Charts and data as well as a two-part interview on the topic with Zaw Thet, CEO of 4Info can be found at and is well worth a read.

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