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Mobile advertising defies economic slide: BuzzCity

The first quarter of 2009 experienced growth in the number of users accessing the mobile Internet, in spite of declining public confidence in the economy and security in the job market, according to Singapore-based BuzzCity.

This was the key finding of BuzzCity's quarterly Global Mobile Advertising Index, which shows the global recession is having little to no effect on mobile advertisers or user habits. The Index documents the growth of mobile Internet advertising and represents inventory sold across the BuzzCity Mobile Advertising Network in more than 200 countries globally.

"Even with the current economic downturn, there is no gloom and doom for the mobile advertising market," said KF Lai, CEO of BuzzCity, and Singapore. "Growth is still very robust and the space is proving every quarter that no brand can overlook it anymore."

In the first three months of 2009, the BuzzCity Advertising Network delivered 8.5 billion paid advertising banners, an increase of 11 percent over the previous quarter.

The following shows the top 10 countries by the number of paid advertising banners delivered in each:

Indonesia: 4.4 billion (23 percent growth)
India: 842 million (16 percent)
United States: 527 million (38 percent)
South Africa: 428 million (-8 percent)
Egypt: 162 million (8 percent)
Romania: 161 million (9 percent)
China: 130 million (67 percent)
Philippines: 125 million (8 percent)
Britain: 113 million (54 percent)
Bangladesh: 112 million (-16 percent)

"Competition for advertising dollars has never been more intense, but the mobile Internet's superior ROI has made this medium a part of many marketers' plans," Mr. Lai said.

The advertising industry has more reasons for optimism.

Britain is in the Top 10 for the first time and joins Romania in representing Europe, suggesting an increase in off-portal activity and the prospect of more advertiser interest.

Italy, Spain, Sweden and France all recorded double-digit growth in the Q4 2008 figures.

Similarly, Egypt's rise to fifth place is the result of steady growth in usage and advertiser interest since it first appeared on the index in April 2008.

"Two things were a bit surprising," Mr. Lai said. "Even though I am a big proponent of the ongoing growth of mobile advertising, year-on-year growth is 225 percent, which is very high. Additionally, growth in the U.S. has finally begun to live up to expectations.

"Mobile advertising is now a serious medium for a lot of brands and companies," he said. "The fact that this medium is highly personal and targeted is a great advantage when the marketing dollars need to be the most effective possible.

"I believe that this will continue to drive growth in mobile advertising moving forward."