Mobile ad market expects rapid growth worldwide even in areas of low connectivity, report suggests
With mobile advertising markets valued at $43.9b in 2014 and projected to increase to $243.7b by 2022, a recent global study by Allied Market Research found that although the market size and forecast amongst competitors may differ around the world based on the factors like search, native social, display, video and SMS (short message services), all areas will see immense growth even in harder to reach areas of the world.
Mobile phones in Bangalore, India
Considering the increase in mobile device and mobile internet users, growth in popularity of social media from North America, Europe, Asia-Pacific and LAMEA (Latin America and Africa), the report predicts million dollar growth in the mobile ad market in areas like hobbies and interests worldwide with an estimated CAGR of 16.7%, while the arts and entertainment segment is predicted to dominate the mobile advertising market with around 45% market share in the future.
Based on the geography, the mobile advertising market was studied across four major regions, namely North America, Europe, Asia-Pacific, and with the Asia-Pacific region accounting for around 42% share of the overall mobile advertising market. Because of ever increasing mobile users, North America mobile advertising market is projected to grow at the highest CAGR of 17.6% during the forecast period.
"With growth in penetration of mobile devices, the number of mobile internet users have also increased at a rapid pace worldwide," according to Sumeet Pal, research analyst, ICT at Allied Market Research. "Further, marketers have found new communication venues for targeting audience with more personalized messages. In addition, mobile advertising is more cost-effective as compared to other marketing methods such as physical, exhibitions and face to face promotion."
The study suggests that as mobile advertisers and content creators develop age-group specific content to target potential customers, mobile users’ data collection through categories such as arts and entertainment, hobbies and interests, and style and fashion are key segments that will enable mobile advertising and content developers to develop more personalized messages.
Meanwhile, according to the Economist, more than a third of internet users now having the necessary software for ad blocking installed in their browsers. But what has advertisers and publishers really worried is that ad-blocking could soon make a dent in the more rapidly growing market for ads on smartphones, which will reach $100 billion this year globally, according to eMarketer, a data provider.
Key players-operating in the mobile advertising industry are also planning to create and develop mobile advertising content that can easily support mobile devices used in low internet connectivity areas. This will enable prominent players to target emerging markets, such as India where mobile internet connectivity is low as compared to the developed markets, such as the US and the UK. One hindrance is that the best positioned firms, however, are Google and Facebook with the two companies having more than half of the mobile-advertising market.