A state-funded think tank yesterday cut its estimate for mobile advertising revenue to NT$2.64 billion (US$90.7 million) this year, down from its original estimate of NT$3.32 billion, due to the economic downturn and the change of regulations on the protection of personal information.
The government-funded Institute for Information Industry (III, 資策會) said many companies have been cutting their spending for ads on smartphones and tablets this year due to the economic slowdown.
In addition, some companies have been reluctant to spend money on text advertising due to the tightening of the Personal Data Protection Act (個人資料保護法) that came into force in October, it said.
Text ads are forecast to generate revenue of NT$1.9 billion this year, down 6.4 percent from a year earlier, the III said.
The expected decline in revenue from text advertisements is also a result of advertisers switching to in-app ads as a result of the growing number of app users, it said.
In general, the mobile ads business will post positive growth due to the growing number of mobile device users, it said.
For mobile display advertising, the revenue is set to jump 101.5 percent to NT$690 million this year, from NT$340 million last year, and the figure is expected to grow 22.3 percent to NT$3.23 billion next year.