Mobile Advertising Market – High Demand for Target-Based Advertising to Drive Growth
The global mobile advertising market has a highly competitive and fragmented landscape observes Transparency Market Research (TMR). Some of the players operating in the global mobile advertising market are Amobee, Inc. (Singtel Limited), Apple, Inc. (iAd), Chartboost, Euclid Analytics, and Facebook, Inc. The mobile advertising market is a cost-sensitive market which requires high initial investment mainly for installation and implementation. This factor is creating an entry barrier for new entrants. The new entrants are entering into the market with mergers, acquisitions, and partnerships in the next few years. Also, some prominent players are taking part in these activities in order to expand their global reach and to gain substantial share in the global market.
According to the TMR, the mobile advertising market was valued at US$ 13.05 Bn in 2014 and expected to reach the value of US$ 269.14 bn by the end of 2024 by expanding with the CAGR of 31.3% over the forecast years from 2016 to 2024. Based on the devices, the mobile advertising market was dominated by the smartphone segment in 2014 by accounting the share of 51.64% of the overall market. Based on the industrial verticals, BFSI is accounted for the largest share followed by hospitality & tourism sector in 2014. Based on the type, search advertising accounted for the higher shares in the mobile advertising market.
High Demand for Target-Based Advertising to Drive Growth
Mobile advertising is a subgroup of mobile marketing which offers information or content created by advertisers mainly for mobile users. The mobile advertising includes other forms such as display advertising, In-app, In-game, search, rich media, SMS/MMS/P2P messaging, and others. Mobile advertising improves reach to the high number of targeted customers or users that could be beneficial for the growth of their business. Thus, the mobile advertising is experiencing higher adoption which is likely to fuel growth of the global mobile advertising market.
Emergence of mobile and Internet across the developing and developed countries is leading to bolster the growth of the mobile advertising market. Additionally, the emergence of social media sites and other most efficient platforms for promotion are having great potential for the branding and advertising. Furthermore, improvements in search engines and growing online shopping retailers are leading to offer the target based advertising programs. This factor is favoring the growth of the global mobile advertising market.
Additionally, the mobile advertising is increasingly used by the end use industries such as Banking, financial services and insurance (BFSI), telecommunication and IT, and fast-moving consumer goods (FMCG) due to its benefits of target advertising are propelling growth of the global market.
Age-group Specific Advertising to Provide Lucrative Opportunities
Despite these growth prospects, the rise in some concerns related to privacy, deletion, and misuse or manipulation of data, and data security are limiting growth of the mobile advertising market. In addition, a growing trend of using ad blockers in order to watch the videos or visit websites without disturbances are restraining growth of the global mobile advertising market. Nevertheless, age-group specific advertising of content and display advertisers and special mobile advertising content in the low mobile connectivity areas are expected to boost its adoption will create lucrative opportunities for growth over the forecast period.