Consumer resistance to in-app mobile ads will be overcome in the next few years and create a market worth over US$860 million in North America alone by 2014, according to a new report by Parks Associates.
“As appetites for mobile apps grow, consumers will become more accepting of in-app ads,” said Heather Way, research analyst, Parks Associates. Increasing acceptance will be welcomed by the apps and advertising industries, given that over 50 percent of all North American adults surveyed said they “don’t like in-app mobile ads” at present.
Parks Associated was keen to talk up the 46 percent of adults aged 18-34 who are either indifferent to in-app ads or willing to endure ads in free mobile apps. The analyst firm claims this will help propel the North American mobile apps market to US$2 billion by the end of the year, with “paid mobile app profits” exceeding US$4 billion by 2014.
“Right now, consumer demand for mobile devices and applications shows no sign of abating, and the big players are responding,” Parks’ Way said. “Research In Motion recently acquired Cellmania in order to expand the BlackBerry App World storefront, and we will see more acquisitions in this market as companies seek to enhance their offerings and their ad platforms.”
The launch of Apple’s iAd mobile advertising ad network earlier this year is regarded as a bellwether for the fledgling industry, with Parks Associates noting that although the service experienced early growing pains, “with slow development and controversies over Apple’s control of the creation process,” at least one advertising partner, Nissan, has reported better engagement with its interactive ads.