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The Interactive Advertising Bureau México (IAB México) and PwC found that mobile marketing revenues, including ad spending and development costs, expanded 98% in Mexico between 2011 and 2012, to reach MXN794 million ($60.33 million) in 2012.
Of the two components in the IAB México/PwC measurement, mobile internet ad spending was the driving force behind gains last year, with a 104% improvement. That growth rate outpaced the also impressive 63% gain in mobile development investments.
Ad spending took the lion’s share of mobile marketing, with 86% of industry revenues generated from ad inventory sales, up from 83% in 2011. Mobile internet ad spending in Mexico totaled MXN683 million ($51.9 million) in 2012.
Within the mobile internet ad spending category, display was the leading mobile ad format, with a 73% share of the market. Interestingly, and perhaps as an acknowledgement of the still dominant presence of feature phones last year, advertisers invested 15.4% of their mobile ad spending budgets in SMS and MMS marketing efforts, a 3.4-percentage-point increase over the share devoted to SMS and MMS marketing in 2011.
Going forward, eMarketer predicts mobile internet ad spending in Mexico, which is still growing from a very low base, will continue in a strong upswing to register growth of about 75% annually through 2014. That year, the amount spent by advertisers in mobile platforms is expected to reach $122.4 million.
Mobile internet ad spending will continue to outpace all other advertising categories including the overall digital ad spending average, which is expected to expand by a solid 38.9% in 2014 to surpass $1 billion for the first time.
Strong mobile internet ad spending is primarily driven by a mobile phone user base that will surpass 67 million consumers this year, according to eMarketer estimates, along with heated smartphone uptake that will see the advanced devices reach 45% of those mobile phone users the following year.
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