The mobile and social media advertising landscape is set to grow exponentially in 2013, according to Frost and Sullivan predictions.

As traditional markets continue to shrink, investment in local mobile search advertising looks set to hit $177 million by 2017, the firm forecast, as Google and Bing promise improved functionality.

Frost & Sullivan’s ANZ ICT senior research manager Phil Harpur said: “Although many large brands are not using mobile advertising yet, a growing number of large companies are now better grasping the concept of mobile advertising and how it can play a crucial role in the overall marketing mix”.

Harpur said advertising on mobile platforms should also become more integrated with other online and offline ad models in the new year, as it moves away from its ‘stand-alone’ perception.

The Frost & Sullivan research analyst also said brands will become more reliant on social media platforms, like Facebook and Twitter, as advertising streams in 2013.

“Nearly 60% of Australian companies that advertise online have advertised on Facebook to some extent during 2012, and this figure is expected to in increase further in 2013 and 2014, as more companies put in place a social media strategy.”

He said around a third of online advertisers now target YouTube, LinkedIn and Twitter.

“Organisations now recognise that they risk failing to connect with a significant online audience if they do not incorporate social media into their marketing strategies,” Harpur added.