[August 26, 2016] |
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Global Mobile Ad Spending Market to Grow at a CAGR of Around 10% Through 2020, Reports Technavio
Technavio
analysts forecast the global
mobile ad spending market to grow at an impressive CAGR
of around 10% during the forecast period, according to their latest
report.
The research study covers the present scenario and growth prospects of
the global
mobile ad spending market for 2016-2020. The report includes
market segments, based on the type of mobile advertising, and a detailed
discussion of the growth prospects and challenges of each segment during
the forecast period. The market segments include search ads, display
ads, and SMS marketing.
Mobile advertisements are not limited to browsers. Nearly 86% of
the mobile users spend time on apps rather than browsing the web via
mobile phones. Therefore, more and more developers are trying to
integrate mobile ads with the apps.
Technavio media
and entertainment analysts highlight the following three factors
that are contributing to the growth of the global mobile ad spending
market:
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Higher brand recalling capability
-
Growth in in-app advertising
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Rapid growth in social media
Higher brand recalling capability
Online advertisements have a higher brand recalling capability when
compared with the other digital
advertisements such as television commercials. It involves better
interaction with the audience since they are passive only to a limited
extent, i.e., the audience has a choice to skip an advertisement, but
after a small duration. This small duration, where the users are forced
to see the ad, increases the interaction of online advertisements with
the audience. On the contrary, the audience can skip television
advertisements by either changing channels, switching off the television
or simply avoid watching it.
Online advertisements are also shorter in duration than television ads
and hence have a higher completion rate. Even when the ad does not
provide the option of skipping the ad, the audience does not hesitate to
view these ads as they are shorter, and well positioned within the
videos or content. According to Technavio analysts, as of 2015, online
advertisements had an average completion rate of more than 85%.
Moreover, not all the online advertisements are auto-played as viewers
also watch online advertisements according to their interests. These
viewers are usually interested in the product or service being
advertised and thus results in a higher brand recall. "With increasing
internet penetration across the globe and rapid technology advances,
advertising agencies and ad services such as Google (News - Alert) ad services are
collecting an enormous amount of consumer data which allows them to
display customized ads," says Ujjwal Doshi, a lead analyst at Technavio
for publishing
and advertising research. For instance, if a user searches for
"new automobile launches in 2016" on the web, they are likely to get
more advertisements related to automobiles. This increases the brand
recall capacity of online advertisement, thereby contributing to the
growth of the online advertising market worldwide.
Growth in in-app advertising
The prevalence of smartphones and tablet devices has consequently
increased the number of designated apps for websites and other online
platforms. A staggering 85% of smartphone usage time is spent on apps as
compared to a mere 15% on browsers.
Enhanced appearance and add-on features provided in apps have increased
their adoption substantially. Pop-up, display, and scroll ads hosted on
apps are appropriate and are generated based on the data collected from
user's devices and their online behavior. These advertisements are being
prominently adopted as they have higher sales conversion rates.
Rapid growth in social media
The average time spent on smartphones and tablets is approximately three
hours in developed countries. An estimated 85% of this time devoted to
mobile devices is on social media apps, and this number is rising in
many developing countries. Pages of individuals or organizations can be
advertised on a larger scale on social
media, which increases the popularity of the brand. "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.
During 2013-2015, an estimated 32% of global customers that were
acquainted about a brand on social media platforms made a purchase,
which is approximately 50% in developed countries such as the US and the
UK. This supports the fact that social media platforms enable
organizations to reach a broader customer base, which in turn increases
brand awareness and customer loyalty.
Browse Related Reports:
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About Technavio
Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.
If you are interested in more information, please contact our media team
at [email protected].
View source version on businesswire.com: http://www.businesswire.com/news/home/20160826005033/en/
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