In Europe, Mobile Channel Bucks Ad Sector Doldrums

The European mobile advertising market is gearing up for a period of substantial growth and increased advertiser interest, according to recent reports from the IAB U.K. and the European Interactive Advertising Association (EIAA).

Research released this week by the IAB found 73 percent of U.K. marketers believe mobile will be the fastest growing digital ad medium in the next five years. The 100 senior agency representatives surveyed by the trade body also claimed that 95 percent of marketing budgets now include a mobile element.

Meanwhile, the EIAA’s bi-annual Ad Barometer report — which polls marketers across Europe — found 19 percent of respondents claim their use of mobile advertising is increasing, up from 12 percent during the first half of the year. Despite a troubled year for the advertising business more widely, 86 percent of respondents claimed mobile ad spend has increased in 2009, and 97 percent predict further growth during 2010.

The IAB research also found agencies are investing in mobile specific resources, with the majority of staff planning mobile campaigns now specializing in the medium. In 2008 around 37 percent of those responsible for planning mobile campaigns within agencies were dedicated specialists, but this figure rose to 52 percent in 2009. Budgets also appear set to grow, with 42 percent of agency respondents predicting they will spend between 6 and 20 percent of their digital budgets on mobile in 2011.

The IAB’s head of mobile, Jon Mew, attributed continued growth in the medium to increased education and awareness of its capabilities. “Mobile advertising is less of a choice for brands, more of a necessity if they want to reach today’s consumer,” he said.

Google’s acquisition of AdMob last week has been perceived by many as a mark of maturity for the mobile ad business, and an encouraging sign for its future. Ben Tatton-Brown, founder and CEO of mobile media agency RingRing Media, described the purchase as “a milestone for the industry,” and said he believes the $750 million price tag was justified given the continued growth of the market.

According to Tatton-Brown, his own U.K.-based outfit now spends around $1 million a month on mobile media, and continues to experience substantial month-on-month growth despite challenging market conditions.

The EIAA also pinpointed the growing smart phone market as a key driver for growth, particularly thanks to the proliferation of handsets such as Apple’s iPhone. AdMob itself launched an iPhone-specific ad network earlier this year, and yesterday announced the availability of interactive video ad units for the handset.

Elsewhere, rival U.S.-based mobile ad network Millennial Media announced $16 million worth of series C funding this week, which it said it plans to pour into further global acceleration — specifically within Europe.