Smartphone obsession boosts mobile ad spend

UK – Mobile ad budgets increased 56% to £1.7 billion in the first half of this year according to the latest figures from the IAB, as people’s reliance on their smartphones continues to grow.

Smartphone bed_crop

This increase equates to 36p in every £1 spent on internet advertising now going on smartphones – five years ago it was just 4p.

People’s smartphone dependence was identified in a recent YouGov survey which showed that 82% of owners check their smartphones within one hour of waking, and that rises to 86% of 18- to 34-year-olds doing so within 30 minutes.

IAB UK’s chief strategy officer, Tim Elkington, said: “People use their mobiles today more like a computer than a phone, being increasingly dependent on them as the hub for information, entertainment and communications.

“The wider range of activities and longer time people spend on them is why companies are raising mobile budgets. It’s also a more effective way for advertisers to deliver more relevant and immediate offers such as those related to certain locations or time of day.”

The IAB/PwC study showed that in the first half of 2016 companies spent a record £4.78 billion to serve ads to people online across mobile, desktops and tablets – a 16.4% annual rise.

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