With mobile advertising emerging as a popular medium for promoting games and apps, publishers and advertising professionals are looking forward to thousands of new campaigns every year. Despite the majority of mobile campaigns having been meant for games or apps, the format and channel popularities is likely to change. Interest of consumer brands is poised to stir up paradigm shift in the world of in-app mobile advertising. This has brought a great news for the global mobile industry.
According to Transparency Market Research (TMR), based on revenue the global mobile advertising market is poised to exhibit an exponential CAGR of 31.3% between 2016 and 2024. The market stood at US$13.05 bn in 2015. As leading enterprises focus on leveraging disruptive technologies for enhancing consumer reach, demand for mobile advertising is expected to increase significantly.
Q: Which device type will provide most lucrative opportunities for mobile advertising?
A: Smartphones present a lucrative opportunity of reaching younger consumers. Hence, the proliferation of smartphones is expected to have a positive impact on the mobile advertising market. According to TMR, holding over 51% of the global mobile advertising market, smartphones emerged as the largest device segment in 2014. Smartphones combine the features of personal computing system with add-ons such as single platform to connect and interact, faster reach, and mobility. This, combined with the convenience offered by smartphones makes them highly viable for mobile advertising.
The sales of mobile phones have outstripped the number of television sets, PCs, and laptops in the last few years. Meanwhile, as the digital advertising platforms continue to develop, mobile display advertising will continue to outperform desktop. As per the findings of the Interactive Advertising Bureau the revenue earned from mobile advertising surged by over 60% in 2015, compared to that recorded in 2014.
The changing consumer behavior and evolving trends within digital platform with regard to tablet and smartphones will have a profound impact on the global mobile advertising market. For instance, recent studies suggest that the demand for video ads in smartphones is more than it is in tablets. In contrast, completion rates are higher in case of tablets. Nevertheless, smartphones are expected to remain a popular medium for propagating mobile advertising through the forecast period.
Q: What recent developments are witnessed in the world of mobile advertising?
A: With people around the world spending more and more time watching videos or playing games in the mobile phones, marketers are provided with lucrative opportunities to capitalize on. Despite being at a nascent stage, video advertising on smartphones is expected to surge at a robust pace in the forthcoming years. More advertisers are likely to explore videos within apps and use geo-targeting and location to reach prospective buyers. Furthermore, as virtual reality and augmented reality become more popular, the effects are expected to trickle into mobile advertising as well.
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With the Facebook developing newer methods of determining which ads to show its users, advertisers with mobile optimized websites could expect better reach and visibility. As per recent study, mobile advertising account for 84% of the Facebook’s earning through advertising. Meanwhile the mobile user base of the social media giant is also growing faster, which provides lucrative growth opportunities for the mobile advertising market.
Following the trend, Google has nudged speedier mobile content with its project called Accelerated Mobile Pages. Besides this, artificial intelligence (AI) has recently made its headway into mobile video advertising. These developments have has helped advertisers provide more personal and relevant experience to consumers, thus boosting the global mobile advertising market.