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Tablets Will Lead Mobile Advertising In 2014

19 Sep, 2012 By: Doug McPherson

BOSTON – A new report predicts tablets will emerge as the primary platform for mobile ad revenue in the next two years as a result of their larger screens and more immersive media experience.

A report from The Yankee Group forecasts that tablets will account for 53 percent of mobile ad dollars in 2014 compared to 47 percent for mobile handsets. By 2016, tablets’ share of mobile ad sales will rise to 60 percent. Ads within mobile applications in particular will help to drive growth.

Yankee Group found that 24 percent of tablet owners click on ads while using apps, and 29 percent purchase extra content. “Although the stats show impressive levels of engagement, only a handful of players have mined this revenue opportunity,” says report author Jason Armitage.

He says publishers should make content easy to access through proprietary and third-party-owned apps. And in TV, partnerships with mobile specialists are an efficient way for production divisions to rethink programming.

He also suggests advertisers plan tablet-specific campaigns to take advantage of the format. So, instead of repurposing TV ads, they should create new spots suited to the short sessions on tablets. Marketers should also use insights gleaned from app and social media use to improve engagement with a brand or service.

The study indicates tablets outperform smartphones across advertising, direct payments and in-app commerce. For example, tablet owners, on average, buy 1.7 paid apps per month compared to 1.1 for smartphone users. And 35 percent of tablet owners buy digital media from online stores versus 21 percent on the smartphone side.

News and information apps account for about 15 percent of tablet app downloads, while shopping and banking apps make up about 20 percent, boosting M-commerce.

Shopping apps are taking advantage of the larger screens and concentrated use associated with tablets. Fashion brands are also ahead of the pack. Tablet-friendly commerce features used by luxury brands and retailers include virtual store tours and magazines with branded content.

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