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Research analysts at Technavio predict steady growth in the global mobile ad spending market and estimate that the market will post an impressive CAGR of around 10% by 2020. One of the major factors fostering growth in the mobile ad spending market will be the rapid growth in social media. Social media acts as a larger platform for advertisers and companies to promote and interact with customers online. Customers’ interests, feedback, and rating will be easily analyzed with the help of social media. Users share posts and updates available on the brand’s homepage, creating more interaction and awareness. These tactics will help companies to create a market presence for their products with a larger customer base. Some research results show that approximately 50% of the customers buy mobile phones after acquiring brand information from social media in developed countries. Social media has helped companies to gain a larger customer base and brand loyalty, and this trend will continue to aid in the growth of the mobile ad spending market during the forecast.
The recent trend in the mobile ad spending market is the adoption of 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. Major airlines like Qantas partnered with Samsung to create VRtechniques for in-flight viewing to promote tourism. At present, it has been observed that VR is not just restricted to video gaming anymore; for instance, Facebook has started endorsing 360-degree video ads for better customer experiences.
The increasing use of smartphones, apps, and the availability of low-cost data services have prompted an increase in mobile advertisements. To gain market shares, vendors have started investing in app developers and agencies specializing in designing, planning, and branding. The market is highly competitive, and vendors will have to maintain an attractive price range, varied portfolios, and products to survive in the market. The analyst estimates the level of competition to be fairly high during the forecast period.
Key vendors in the mobile ad spending market are:
The other prominent vendors in the market are AppNexus, Byyd, Convertro, Criteo, Fiksu, iAd, Kiip, Matomy Media, Mobile Network Group, MobPartner, Tapjoy, PubMatic, RevMob Mobile Ad Network, and RockYou.
During 2015, search ads were the most popular mobile advertising mode and accounted for more than 52% of the market share. Search engine giants like Google and Yahoo are investing in technologies to improve frequently asked questions and keyword searches to facilitate more ads in the web-based platforms. This will help in the optimization of digital marketing, and market researchers predict that this trend will continue to grow during the forecast period.
Experts at Technavio predict that the Americas will dominate the market and post a CAGR of about 7% by 2020. Modernization will be the key factor contributing to the rising demand for digital marketing in this region. This will result in consumers rapidly shifting towards online shopping. For instance, Walmart has ventured into the online shopping market space to maintain their large customer base and market shares.
PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Industry overview
PART 06: Market landscape
PART 07: Market segmentation by type
PART 08: Geographical segmentation
PART 09: Global mobile ad spending market penetration
PART 10: Key leading countries
PART 11: RTB potential
PART 12: Mobile ad potential
PART 13: Market drivers
PART 14: Impact of drivers
PART 15: Market challenges
PART 16: Impact of drivers and challenges
PART 17: Market trends
PART 18: Vendor landscape
PART 19: Appendix
PART 20: Explore Technavio
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