According to Gartner Inc., global mobile advertising revenue is expected to reach $11.4 billion in 2013, up from $9.6 billion in 2012

Also, worldwide revenue will reach $24.5 billion in 2016 with mobile advertising revenue creating new opportunities for application developers, advertisement networks, mobile platform providers, specialty agencies and communications service providers in certain regions.

The research firm believes that geographical regions will also evolve at a different pace and in different directions. Historically, the atypically large adoption of handsets for digital content consumption in Japan and South Korea has given the Asia Pacific region an early lead in mobile advertising worldwide. Going forward, the high-growth economies of China and India are expected to contribute increasingly to mobile advertising growth, as their expanding middle classes present attractive markets for global and local brands.

However, North America and Western Europe will close the gap on Asia Pacific as the mobile channel gets more and more integrated with 360-degree advertising campaigns, eating up budgets historically allocated to print and radio. Consumer multitasking will drive preference for multiplatform approaches, which will blur the lines between channels and make it difficult to eliminate category overlap. In the rest of the world – Latin America, Eastern Europe, and the Middle East and Africa – mobile advertising growth will be aligned with technology adoption and the stabilisation of emerging economies, but will mostly be driven by large markets such as Russia, Brazil and Mexico.

Gartner also says that different types of mobile advertising are evolving at a different pace and in different directions. Mobile search – including paid positioning on maps and various forms of augmented reality, all of which can be informed by location – will contribute to drive mobile advertisement spending across the forecast period, although it will diminish in strength as the period progresses. Gartner believes that mobile display ad spending will grow and take over from mobile search. It will initially remain divided between in-application and mobile web (in-browser) placements -reflecting consumer usage ? although after several years of in-application dominance, web display spending will take over in-application display from 2015.

The rapidly growing share of time that consumers spend on mobile devices is generating advertisement inventory at a pace considerably faster than most advertisers can shift their spending to the medium. This creates a surplus condition that is driving down unit advertisement prices which in turn has led to a situation in which a significant portion of mobile advertisement inventory is taken up by application developers paying for advertisements to promote their applications and get them more downloads, a category known as “paid discovery.”

While the revenue basis of paid-for application store downloads provides some economic justification for this category, for many developers the outlay for advertisements is close to their maximum advertisement income or even exceeds it.

This creates a circumstance, reminiscent of the early days of web advertising, in which cyclical advertising arrangements among websites produced an inflated picture of revenue that may ultimately prove to be a bubble.

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According to Gartner Inc., global mobile advertising revenue is expected to reach $11.4 billion in 2013, up from $9.6 billion in 2012

Also, worldwide revenue will reach $24.5 billion in 2016 with mobile advertising revenue creating new opportunities for application developers, advertisement networks, mobile platform providers, specialty agencies and communications service providers in certain regions.

The research firm believes that geographical regions will also evolve at a different pace and in different directions. Historically, the atypically large adoption of handsets for digital content consumption in Japan and South Korea has given the Asia Pacific region an early lead in mobile advertising worldwide. Going forward, the high-growth economies of China and India are expected to contribute increasingly to mobile advertising growth, as their expanding middle classes present attractive markets for global and local brands.

However, North America and Western Europe will close the gap on Asia Pacific as the mobile channel gets more and more integrated with 360-degree advertising campaigns, eating up budgets historically allocated to print and radio. Consumer multitasking will drive preference for multiplatform approaches, which will blur the lines between channels and make it difficult to eliminate category overlap. In the rest of the world – Latin America, Eastern Europe, and the Middle East and Africa – mobile advertising growth will be aligned with technology adoption and the stabilisation of emerging economies, but will mostly be driven by large markets such as Russia, Brazil and Mexico.

Gartner also says that different types of mobile advertising are evolving at a different pace and in different directions. Mobile search – including paid positioning on maps and various forms of augmented reality, all of which can be informed by location – will contribute to drive mobile advertisement spending across the forecast period, although it will diminish in strength as the period progresses. Gartner believes that mobile display ad spending will grow and take over from mobile search. It will initially remain divided between in-application and mobile web (in-browser) placements -reflecting consumer usage ? although after several years of in-application dominance, web display spending will take over in-application display from 2015.

The rapidly growing share of time that consumers spend on mobile devices is generating advertisement inventory at a pace considerably faster than most advertisers can shift their spending to the medium. This creates a surplus condition that is driving down unit advertisement prices which in turn has led to a situation in which a significant portion of mobile advertisement inventory is taken up by application developers paying for advertisements to promote their applications and get them more downloads, a category known as “paid discovery.”

While the revenue basis of paid-for application store downloads provides some economic justification for this category, for many developers the outlay for advertisements is close to their maximum advertisement income or even exceeds it.

This creates a circumstance, reminiscent of the early days of web advertising, in which cyclical advertising arrangements among websites produced an inflated picture of revenue that may ultimately prove to be a bubble.