FREMONT, CA: ‘Global Mobile Ad Spending Market’, a report by Technavio predicts that the global mobile ad spending market to grow at a CAGR of around 10 percent from 2016 to 2020. The report includes market segments like search ads, display ads, and SMS marketing, based on the type of mobile advertising.
The mobile ad spending market is adopting virtual reality (VR) techniques to promote brands. VR techniques create a new experience for the customer and help spread awareness of various aspects of the product. Apart from this, online advertisements also have a higher brand recalling capability when compared to television commercials. According to Technavio analysts, as of 2015, online advertisements had an average completion rate of more than 85 percent. “With increasing internet penetration across the globe and rapid technology advances, advertising agencies and ad services such as Google ad services are collecting an enormous amount of consumer data which allows them to display customized ads,” says Ujjwal Doshi, Analyst (publishing and advertising research), Technavio.
Social media plays the major role in stimulating the growth in the mobile ad spending market. It is a platform for advertisers and companies to promote and interact with customers online. “Social media users share posts and updates hosted on brand pages on their network, which further increases brand acquaintance. Regular updates on social media help to acquire new customers and increases familiarity among existing customers,” says Ujjwal Doshi.
The increasing use of smartphones and the availability of low-cost data services have impelled an increase in m obile advertisements along with the number of designated apps for websites and other online platforms. Study shows that nearly 86 percent of the mobile users spend time on apps as compared to a mere 15 percent on browsers and thus mobile apps have higher sales conversion rates.
Some of the key vendors in the mobile ad spending market are AdMob, Chartboost, Flurry, InMobi, Millennial Media, MoPub. America, driven by modernization, is predicted to dominate the market and post a CAGR of about 7 percent by 2020.