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 percent of their time looking at mobile screens, but the medium still only commands about 1 percent 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:
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.