Millennial CEO Paul Palmieri Describes How Mobile Advertising Will Grow To $13 Billion

Paul PalmieriMillennial Media CEO Paul Palmieri.

Photo: Millennial Media

Paul Palmieri, CEO of Millennial Media, opened the Smarter Mobile Marketing (SM2) conference in New York this morning by noting that consumers spend about 10 per cent of their time looking at mobile screens, but the medium still only commands about 1 per cent of advertiser budgets.The time/spend ratio under-represents the potential of mobile compared to the dollars going into traditional media. He gave these numbers:

  • Mobile: 10 per cent time; 1 per cent adspend share
  • Magazines: 3 per cent time; 11 per cent adspend share
  • Newspapers 4 per cent time; 14 per cent adspend share

Using a piece of research by Gartner from 2011, suggested that annual mobile ad spending would grow like this:

  • $3.9 billion in 2012
  • $6.8 billion in 2013
  • $9.9 billion in 2014
  • $13.5 billion in 2015

The implication is that, inevitably, the dollars will come to match the time consumers actually spend on their devices.

“It’s the only advertising medium available continuously all day for advertisers,” Palmieri said. “We see the traffic on our mobile platform begin to climb at 5 a.m.,” and it doesn’t ease off until late at night on the West Coast of the U.S.

(After concluding his speech, Palmieri took a seat in the auditorium right next to mine, by coincidence, and watched me type this item.)

Related:

  • Pandora and Twitter Take More Mobile Ad Dollars Than Facebook or Apple
  • Here Is The Evidence That Mobile Advertising Is In A Bubble
  • 4 Companies Who Are Losing Millions In Mobile Advertising

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