Advertising is a form of marketing communication that aims to promote and spread awareness about an entity that could be a product, service, or ideology, to name a few. As the name suggests, mobile advertising is carried out using mobile devices.
While some may regard mobile advertising as a close relative to online advertising, its reach and penetration is far greater. According to a report by Forrester Research, the world had over a billion active PCs by the end of 2008. This number is expected to rise to two billion in 2015 on the back of strong growth in the emerging markets.
On the other hand, the number of mobile phones is already expected to be near the human population. It is, thus, easily evident that mobile advertising offers greater gains and benefits compared to online advertising.
Current Market for Mobile Advertising
Today, it is a core component of the modern consumers’ life. However, it was not certain whether revenues would follow consumers to the mobile platform. Concerns were raised about the ability of organizations to monetize mobile devices successfully. It is now evident that those fears were unfounded. Organizations have successfully monetized mobile devices to generate tremendous profits.
According to the Interactive Advertising Bureau, the mobile advertising industry experienced a worldwide growth of 65 percent in 2014. From $19.3 billion in 2013, the industry achieved a net worth of an eye-popping $31.9 billion in 2014. The best part is that the industry is nowhere near slowing down. This is remarkably astounding considering the fact that some folks had already prepared obituaries for mobile advertising not too long ago.
Trends in Mobile Advertising
The market for mobile advertising is not merely growing; it is exploding. In fact, this medium is expected to out grow all other digital ad platforms. Taking that into account, the future certainly promises to be bigger and better for the industry.
Marketers and advertisers realize that the future lies in mobile marketing and are taking big steps to incorporate the power of the platform in their strategies. However, the mobile advertising platform remains immensely underutilized due to a lack of knowledge in maximizing the space. Here are a few things marketers should keep an eye on.
Shift Towards the App Model
For mobile marketers and advertisers, the big swing is the shift towards apps. After all, mobile marketing is no longer about banner ads. From mid-2013 to mid-2014, AdBlock usage grew by as much as 70 percent. What is more illuminating is that 41 percent of young customers (18-29 years) use AdBlock technology. Customers now try to eliminate ads from the experience completely.
On the other hand, people are now spending more time than ever on mobile apps. Mobile app usage made up about 86 percent of the total time spent by users on mobile devices. While the mobile experience is still clunky due to the absence of a smooth transition from one app to another, the situation is rapidly changing thanks to the likes of URX, Quixey, and Deeplink.
Spending on Mobile Advertising to Exceed That of Desktop Advertising
As of 2015, marketers are spending a little over a billion dollars more on desktop advertising than on mobile advertising. Crossing this milestone would be more than mere symbolism – it would indicate that marketers are not only embracing the app model, but also finding tremendous success in reaching the consumers on the small screen. The sector is expected to get a huge push in 2016.
By 2017, spending on Mobile Advertising is expected to be double that of Desktop Advertising.
Mobile Video Advertising
While mobile video advertising has grown steadily over the years, it is now beginning to justify the hype it has generated in all this time. In the United States alone, spending on mobile video advertising doubled from $720 million in 2013 to $1.5 billion in 2014. It is expected to touch $6 billion in 2018. Several factors have contributed to the increase in video advertising spending such as the increase in number of mobile devices and improvement in broadband coverage.
2014 was a landmark year for the sector as more companies discovered that mobile video advertising was an effective technique to reach, engage and acquire a wider audience. For instance, the vast majority of apps are Freemium titles. This has made rewarded ads – ads that promote premium content or currency – remarkably popular as they nearly guarantee user engagement. However, rewarded videos remain more popular as they entertain and captivate the target audiences. This is a win-win situation for all parties – advertisers, consumers, and developers.
It could be argued that video is more user-friendly and impactful than all other types of advertising. It is probably why app developers are now integrating video ads into their apps to provide a context-relevant in-app experience.
As evident from all the reports, the future of mobile advertising is extremely bright with a promise of better customer engagement and return on investment. The users would want advertisers to reach them with ease and offer timely and relevant information, promotions, and discounts right on their mobile devices. Mobile advertising also enables a deeper level of personalization, and that is a win-win situation for both the marketers and the audience. Out source to india has been providing various types of mobile advertising, in-app advertising, mobile app development, mobile site development, mobile game development services to companies across the globe, and we see a huge rise in the demand for these services.