Mobile advertising in the U.K. grew 157% to £203.2M in 2011, finds study, as number of residents who used mobile apps or Internet to view online content hit 58% per month

LOS ANGELES , March 20, 2012 () – According to an annual mobile advertising spending study conducted by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC), spending on mobile advertising in the U.K. grew 157% to £203.2 million (US$322.19 million) in 2011, Internet Retailing reported March 20.

Fifty-four percent of display advertising is now done via apps, which also account for 46% of all spending in this advertising sector. Year-over-year, display advertising on mobile devices increased 186% from £28.1 million to £68.9 million in 2011. Currently, mobile display advertising has a 34% market share, which is unchanged from 2010. Mobile display advertising was only worth £14.2 million in 2008.

Spending on standard display formats increased 196% to £59.4 million.

Spending on the advertising sector that includes multimedia messaging services (MMS) and short messenger services (SMS) grew 241% from £2.5 million to £7.6 million.

Mobile video advertising grew from £0.2 million to £0.8 million.

Year-over-year, mobile search grew 145% from £54.9 million to £134.3 million, with a 66% market share. Mobile search was only worth £14.4 million in 2008.

According to the study, 53% of the British population owns a smartphone. The proliferation of mobile devices, including smartphones and tablets, and touch-screen technology has led to an increased interest in mobile sector advertising on the parts of brands.

comScore Inc reported that, year-over-year, the percentage of U.K. mobile audience that used a mobile device to access a social media site at least once rose 35.6% to 18.8 million, or 38%.

According to the IAB’s studies:

        • 28.6 million British people, of 58% of the total population, use mobile apps or Internet to view online content

        • People who view static banners are 25% less likely to remember these ads than those who view expandable banners.

        • 27% of survey respondents that having a touchscreen had increased the likelihood that they would interact with ads.

        • 24% of British mobile phone owners have purchased at least one service or product via their mobile phone.

        • 98% of agencies have increased the amount of money that they spend on mobile advertising.

        • 90% of agencies expect that, over the next five-year period, the fastest growing media sector will be mobile. They expect that search will be influential.

The primary source of this article is Internet Retailing, London, England, on March 20, 2012.

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