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The Global Mobile Advertising Market size is estimated to grow at a CAGR of 12.54% between 2022 and 2027. The market size is forecast to increase by USD 290.16 billion. The growth of the market depends on several factors, including growth in in-app advertising, the introduction of video advertisements, and the emerging trend of social media.
This report extensively covers market segmentation by type (search, display, video, and others), end-user (large enterprise and SMEs), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Figure 1: Mobile Advertising Market Share
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growth in in-app advertising is a key factor driving market growth. The global mobile advertising market is propelled by the surging popularity of in-app advertisements. With over 80% of mobile users dedicating their time to apps rather than browsers, advertisers are drawn to this platform to showcase products and services. In-app ads benefit both developers and users by generating revenue without app charges and targeting specific audiences via collected app data. In comparison, mobile web display ads can be unappealing.
In-app ads are screen-fitted, enhancing engagement and accessibility due to users' constant phone presence. Brands engage audiences across channels, encouraging reviews, and offering rewards for app downloads, thus efficiently reaching their targets. These factors forecast the global mobile advertising market's growth during the forecast period.
The rapid growth of programmatic advertising is a key trend shaping the market growth. Programmatic advertising has emerged as a streamlined and advantageous tool for businesses, eliminating intermediaries and fostering efficiency. Its appeal to marketers and advertisers is underscored by five key advantages.
Firstly, real-time insights allow advertisers to fine-tune their campaigns as they unfold, resulting in heightened effectiveness and tailored communication with consumers, thereby deepening their understanding of the target audience. Secondly, transparency is a defining feature of programmatic advertising, providing advertisers with immediate access to crucial metrics such as display locations, costs, and viewership. This transparency empowers advertisers to make informed decisions and optimize campaigns for optimal results.
Rising privacy and security concerns is a major challenge hindering the market growth. Addressing privacy and security concerns linked to mobile advertisements poses a significant challenge for the worldwide mobile advertising market. In 2019, over 100 million app downloads introduced invasive ads, utilized by 5% of free Google Android apps, potentially extracting data or installing software without user awareness. Some networks are more intrusive, gathering email addresses, phone numbers, altering home screens, tracking locations, or delivering ads via notifications.
Obscured data collection breeds user apprehension about potential misuse. While collecting user activity data is ethically dubious, it aids marketers in refining targeting accuracy. Apple's iOS and Google's Android often transmit location data without consent. These privacy and security issues may hinder the global mobile advertising market's growth during the forecast period.
The market share growth by the search segment will be significant during the forecast period. This segment includes mobile advertisements that are displayed using the information collected from search keywords on browsers and apps. These ads are targeted and hosted on all web pages accessed by a user.
Figure 2: Mobile Advertising Market by Type (2017-2027)
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The search segment was valued at USD 73.72 billion in 2017 and continued to grow until 2021. Search ads are the most popular mode of mobile advertising and will continue to be the same during the forecast period. These ads have higher conversion rates than other ads and are more relevant because they are displayed based on the information collected from the frequently searched keywords of the user. Prominent search engine providers, including Alphabet and Verizon, are focusing on enhancing their mobile search ads based on advertiser feedback.
For instance, the search criterion will automatically redirect the users to the closest outlet based on the location of the device. These features are also extended to other apps and map services that are predominantly accessed on mobile devices. Furthermore, Google (Alphabet), Facebook, and Microsoft are continually optimizing their technologies to enable efficient digital marketing. Thus, owing to such factors the segment is expected to grow during the forecast period.
Based on the end-user, the large enterprise segment holds the largest market share. This is due to the increasing adoption of mobile advertising solutions by large enterprises. When compared with other methods of advertising, mobile advertising solutions are very cost-effective. Print, TV, and outdoor advertising, for example, have significantly higher production and purchase costs. The main benefits of mobile advertising for large enterprises include an increase in customer engagement, cost-effectiveness, or delivery of personalized messages to the target group.
Figure 3: Mobile Advertising Market by Region
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America's mobile advertising sector is primarily propelled by rising disposable income, extensive mobile device and internet penetration, and strong consumer inclination towards online shopping. The prevalence of Wi-Fi, 5G, and app usage enables effective in-app advertising. Despite the US driving the North American market in 2020, saturation is approaching. However, the launch of 5G/LTE services in 2019, exemplified by Verizon's 5G in Chicago and Minneapolis, stimulated growth. 5G's advantages, such as higher bandwidth and lower latency, drive demand for mobile advertising. These factors are anticipated to foster market expansion and revenue generation during the forecast period.
In 2020, the US and Canada witnessed a 50% surge in mobile phone minutes attributed to COVID-19-driven data traffic, propelled by widespread work-from-home arrangements. This upswing in online activity sparked heightened demand for mobile advertising services across industries, catalyzing the North American mobile advertising market's growth. The latter half of 2020 saw the easing of lockdowns through robust vaccination drives, enabling industry resumption in 2021 across sectors like retail, BFSI, and telecom.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Inmobi- The company offers mobile advertising platform which leverages mobile signals to check insights on particular product or service, thus display in mobile set or tabs for the user.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Alphabet Inc., AppLovin Corp., Criteo SA, DIGI117 Ltd., Digital Turbine Inc., DotC United Group, EPOM, GUMGUM Inc., InMobi Pte. Ltd., ironSource Ltd., Leadbolt Pty Ltd., Matomy Media Group Ltd., Media and Games Invest SE, Meta Platforms Inc., MOLOCO Inc., Otello Corp. ASA, Unity Software Inc., Verizon Communications Inc., Yeahmobi Inc., and Zynga Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Mobile Advertising Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.54% |
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Market growth 2023-2027 |
USD 290.16 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
12.0 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 49% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., AppLovin Corp., Criteo SA, DIGI117 Ltd., Digital Turbine Inc., DotC United Group, EPOM, GUMGUM Inc., InMobi Pte. Ltd., ironSource Ltd., Leadbolt Pty Ltd., Matomy Media Group Ltd., Media and Games Invest SE, Meta Platforms Inc., MOLOCO Inc., Otello Corp. ASA, Unity Software Inc., Verizon Communications Inc., Yeahmobi Inc., and Zynga Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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