Canadian mobile ad revenues for 2009 grew 169% over 2008 totals to $31.9 million, well beyond the forecasted $18 million, according to the Interactive Advertising Bureau of Canada’s Canadian Mobile Advertising Revenue Report, released today.
The study, which was conducted in late 2010, found revenues in 2010 likely grew by 60% to $51 million.
For the first time, IAB Canada divided the mobile advertising revenues into mutually exclusive ad placement/spend and production-only categories within the survey to get an update on ad spend as per other media, in addition to monitoring the app development industry.
In 2009, ad placement/spend was the major driver behind the 169% increase in overall Canadian mobile ad revenues. It grew at a rate of 325% year over year and was largely driven by mobile messaging. The net revenue was $15.65 million.
Also, mobile search grew drastically in 2009. It reached $6.7 million. This trumped the $5.1 million in ad revenues from mobile display/sponsorship.
The development of mobile apps saw an astounding 1,377% growth rate in 2009 over 2008. This growth fuelled the production-only ad revenue and was driven by the popularity of smart phones.
IAB’s study includes a breakdown in revenue by advertising category. Of the 11 product/service categories in the study, in 2009 it was telecommunications, entertainment and packaged goods that accounted for half of all reported mobile advertising revenues in the country.
Automotive, financial, leisure travel, media and retail generated 43% in total; the other 7% was from technology, pharma and other categories.
Compared to growth in online and other media, mobile advertising did well with a 325% revenue growth increase. On the other hand, mature major media saw a drop of 11% across TV, newspaper, radio, out of home and magazines. Online saw 14% growth in 2009.
“Mobile advertising is growing in the typical hockey-stick manner, and shows no sign of plateauing in any way shape or form at this point,” said IAB president, Paula Gignac. “What will drive even more advertiser acceptance now is more research, education, standards and human resources dedicated to the channel.”
IAB first commissioned the study in 2007, finding that in 2006 total mobile spend was about $1.1 million; increasing to $11.9 million in 2008.
