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TMCNet:  Advertising on tablets rakes in five times as much as on smartphones

[January 11, 2013]

Advertising on tablets rakes in five times as much as on smartphones

Jan 11, 2013 (London Evening Standard - McClatchy-Tribune Information Services via COMTEX) -- Advertising on tablet computers is becoming far more costly than on smartphones, generating five times as much revenue per user, according to research from consultants Deloitte today.

The fact that tablets have bigger screens, making it easier to display ads, and people use them for longer at home, rather than quickly on the go, are key reasons why advertisers are paying more.

Paul Lee, a research director at Deloitte, estimated a tablet user will generate $12.60 (pounds sterling 7.85) per head in ad revenue compared with $2.50 for a smartphone user this year.

He said the bigger keyboard also meant users were less prone to "fat fingers" -- typing errors -- which made ads and e-commerce more effective. Marketers tend to treat mobile advertising as a single category but Lee reckoned tablets and smartphones will each become distinct.

"Mobile advertising is dead -- long live tablet and smartphone advertising," he said. Smartphone ads are still growing fast and will bring in around $4.9 billion this year, against $3.4 billion for tablets, because there are more phones on the market.

But booming sales of bigger devices such as Apple iPad and Google Nexus mean the gap is closing.

___ (c)2013 London Evening Standard Visit the London Evening Standard at www.standard.co.uk Distributed by MCT Information Services

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