Business

Mobile ad spending explodes in Denmark — seriously

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In this instance, percentage increases mean more than dollar amounts.

With nine out of 10 people in Denmark using smartphones, mobile ad spending doubled between 2012 and 2013, rising from $7 million to $14 million in a year, according to a marketing report from IAM Denmark and Deloitte. The number represents a 96 percent year-over-year increase.

To be sure, it seems like a paltry sum considering the global market for mobile was over $17 billion last year. That number is expected to reach $34 billion by the time the candles are blown out when 2014 passes into oblivion, according to analysts.

Still, for a population of only 5.6 million, give or take a few, the report provides a microcosmic study of where mobile ad spending trends are going globally: up. And up. And up.

The report’s definition of mobile ad spends includes display advertising like rich media, contextual advertising, and banner ads. The data the study uses included ads bought purely to run on mobile devices such as tablets and smartphones.

According to the report, which can be seen here:

“Total digital ad spending in Denmark saw growth of more than 8 percent last year to hit DKK4.92 billion ($875.4 million), according to IAB Denmark/Deloitte. Search led the way, with expenditures on the channel rising 14% to maintain the No. 1 spot in total spending among digital formats. Display jumped 8 percent to DKK1.57 billion ($279.4 million), while investments in permission marketing were up 7 percent. Classified ad spending remained flat.”

Andrew Frank, an analyst at Gartner who studies the mobile sector, said the numbers are decent considering the country is so small.

“The study says beware of sample size,” Frank said, laughing. “There’s no doubt mobile is growing very quickly. But I don’t know how much weight I’d put into Denmark.”


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