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Global mobile VAS is expected to to exceed $200 billion by 2017 from $161 billion in 2012.
The new Strategy Analytics forecast, "Global Mobile Media Forecast: 2001-2017," predicts spending on consumer mobile media services consumed via the handset (which excludes tablet spend) including handset browsing, mobile applications, mobile games, mobile music, mobile video, mobile TV, ringtones, wallpapers and alerts - will rise from $161 Billion in 2012 to exceed $200 Billion by 2017.
Although operators remain concerned at being bypassed by providers of over-the-top media services carriers have gained considerably from consumer demand for media access on their phones. Data revenue accounted for $100 billion, or 62.5 percent, of total mobile media spend in 2012.
Mobile access to web browsing, games, apps and social media services will continue to drive mobile data adoption, enabled by the growing installed base of media-centric smartphones and flexible data pricing.
Nitesh Patel, director of the Wireless Media Strategies (WMS) research program said, "Going forward the challenge will be driving mobile media growth in less mature mobile data markets, where a large portion of users have basic or feature phones, remain served by 2G networks, but where demand for information, content and entertainment on mobile devices will be strong. Casual data tariffs or service orientated pricing will be a requirement in these markets, particularly as low priced smartphones become increasingly available."
Mobile advertising will become an increasingly important revenue stream, more than tripling to exceed $42B by 2017, and accounting for 18 percent of total mobile media expenditure.
David Kerr, vice president, Strategy Analytics said, "Mobile is becoming a core part of digital advertising with companies like Google making it easier for advertisers to deliver ads to mobile devices. Facebook also reported 30 percent of its digital ad revenue derived from mobile, which underlines advertiser demand to test and experiment with well-targeted mobile inventory provided by popular social networks."