Mobile Advertising Market by Type, End-user, and Geography - Forecast and Analysis 2023-2027

Mobile Advertising Market Forecast 2023-2027

The Global Mobile Advertising Market size is estimated to grow by USD 290.16 billion, at a CAGR of 12.54% between 2023 and 2027. Market expansion hinges on various factors, notably the surge in in-app advertising, the integration of video advertisements, and the burgeoning influence of social media platforms. With the proliferation of mobile applications and the increasing time spent by users on smartphones, in-app advertising has become a potent tool for marketers to reach their target audience effectively. Additionally, the introduction of video advertisements adds a dynamic dimension to advertising campaigns, capturing viewer attention and conveying messages more engagingly. Furthermore, the growing prevalence of social media platforms as key channels for communication and content consumption presents new avenues for advertising and brand promotion. As these trends continue to evolve, the market is expected to witness sustained growth, driven by innovative advertising strategies and the increasing digitalization of consumer interactions.

Market Overview

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Market Segmentation

In the market, companies like Chartboost and Centaur Media plc leverage location-based technology to deliver targeted ads. However, privacy concerns persist, prompting a need to balance format with user data protection. This industry sees significant growth in developing economies, where media and entertainment consumption on mobile devices rises. While there's a high threat of new entrants, established players employ various formats like text ads via SMS and banner advertisements to maintain market share. Advanced technologies such as machine learning (ML) and search engine integration enhance ad targeting, ensuring that banners remain effective in the dynamic landscape of mobile advertising.

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 market forecasting report includes historic market data from 2017 to 2021.

By Type 

The market share growth by the search segment will be significant during the forecast period. The market is experiencing significant growth, driven by advancements in technology such as 5G and the increasing use of mobile devices for digital marketing. Search engines, including Alphabet and Verizon, are enhancing mobile search ads, utilizing location data to redirect users to nearby outlets. Ad formats like banner ads, interstitial ads, native ads, text ads, video ads, and AR/VR ads are being optimized for mobile devices. E-commerce and media & entertainment industries are major drivers of this market.

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The search segment was valued at USD 73.72 billion in 2017. However, challenges such as ad fraud and the need for strong infrastructural facilities persist. IT industry leaders like Google, Facebook, and Microsoft are continually innovating to provide efficient digital marketing solutions. Android and iOS platforms dominate the market, with conversions and purchases increasingly taking place on smartphones and tablets. SMS and Internet speeds also play a role in the effectiveness of mobile advertising.

 By End-User 

Based on the end-user, the large enterprise segment holds the largest market share. The market is predicted to be dominated by large enterprises, driven by the increasing adoption of mobile advertising solutions. With the advent of 5G technology and the rise of digital marketing, mobile advertising offers cost-effectiveness and higher customer engagement compared to traditional methods like print, TV, and outdoor advertising. Benefits include personalized messaging, increased conversions and purchases, and reaching specific markets. Mobile devices, including smartphones and tablets, are the primary drivers, with IT industry leaders in the media & entertainment sector and e-commerce companies strongly investing. Technological expertise in AR, VR, and native ads is crucial. However, challenges such as ad fraud and the need for strong infrastructural facilities persist. Banner ads, interstitial ads, text ads, and video ads are common formats, with search engines and social media platforms being popular channels. Android and iOS are the dominant operating systems.

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. The market in North America is experiencing significant growth, driven by the widespread use of mobile devices and high-speed Internet connections like 5G. Key factors include the dominance of the US market, the rise of e-commerce, and consumer preference for online shopping. Technological advancements, such as Augmented Reality (AR) and Virtual Reality (VR), are also driving growth.

Furthermore, Ad formats include Banner Ads, Interstitial Ads, Native Ads, and Video Ads. Challenges include ad fraud and the need for strong infrastructural facilities. The IT industry, media & entertainment, and the Android and iOS platforms are major drivers. Digital marketing, including search engines and SMS, also plays a role. The market is expected to continue its strong growth, fueled by the technological expertise of North American companies and the recent dominance of smartphones and tablets.

Market Dynamics

In the market, the proliferation of mobile browsers has transformed how brands engage with consumers. Key statistics and insights into consumer preferences drive targeted campaigns, leveraging user behavior data and technology advancements such as artificial intelligence. Social media integration amplifies reach, while emerging technologies promise innovative ad formats. Strategies focus on engaging advertising that resonates with mobile networks users, optimizing for internet speed and user experience. Data analytics and user behavior tracking inform real-time ad placement, ensuring ads reach the right audience through ad inventory management. Formats like shoppable posts and stories enhance community engagement and brand-building, while retargeting efforts leverage user profiles for maximum impact, ultimately driving mobile optimization and responsive design for a positive user experience and higher engagement rates.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.

Key Market Drivers

The growth in in-app advertising is the key factor driving the market. The market has experienced significant growth, driven by the increasing usage of portable apps. According to Insider Intelligence, users spend approximately 80% of their time on apps compared to 20% on browsers. This trend has led advertisers to invest in in-app advertisements, providing app developers with a cost-effective revenue source. In-app advertisements offer targeted audience reach through data collection and cache files. Key trends in the market include the integration of 5G technology, the rise of augmented reality (AR) and virtual reality (VR), and the dominance of native, interstitial, banner, text, and video ads. Challenges and restraints in the market include ad fraud and the need for strong infrastructural facilities.

Further, the IT industry, media & entertainment, e-commerce, and search engines are major drivers of advertising, with smartphones and tablets being the primary devices. The recent dominance of Android and iOS platforms, along with technological expertise, has further fueled the market's growth. In the digital marketing landscape, in-app advertisements are a significant driver of conversions and purchases, with search and SMS ads also playing a role. The market is expected to continue its growth trajectory, fueled by advancements in 5G technology, the increasing popularity of AR and VR, and the growing importance of devices in our daily lives. Thus, such factors will impede market growth during the forecast period. 

Significant Market Trends

The rapid growth of programmatic advertising is a major market trend. The market is experiencing significant growth, driven by advancements in technology such as 5G and the increasing use of devices. Programmatic advertising plays a key role in this development, offering real-time data and insights for advertisers to optimize campaigns and improve consumer engagement. Transparency is another advantage, allowing advertisers to track metrics like conversions and purchases on platforms including Android and iOS.

However, challenges such as ad fraud and the need for strong infrastructural facilities pose restraints. Technological expertise is essential for leveraging innovative formats like native ads, banner ads, interstitial ads, text ads, video ads, AR, and VR on mobile devices. The IT industry, media & entertainment, e-commerce, and search engines are dominant sectors in mobile advertising, with digital marketing and smartphones driving growth. Despite these opportunities, marketers must navigate the complexities of mobile advertising to maximize returns. Thus, such factors will boost market growth during the forecast period. 

Major Market Challenges

A significant challenge facing the market is the rising privacy and security concerns. The market faces significant challenges, particularly in the realm of privacy and security. According to Insider Intelligence, over 5% of free apps on the Google Android platform, equating to approximately 100 million downloads in 2019, employed invasive advertisements. These advertisements, which can collect data from devices without user knowledge, include banner ads, interstitial, text, and even install unwanted software. Ad fraud and data misuse are major concerns, with some networks collecting email addresses and phone numbers without consent. The lack of transparency surrounding data collection fuels user anxiety. As the IT industry advances with technologies like 5G, Augmented Reality (AR), and Virtual Reality (VR), mobile advertising must adapt to maintain user trust.

Further, restraints to the market's dominance include concerns over ad fraud, user privacy, and the increasing use of ad-blockers. In the digital marketing landscape, mobile devices, including smartphones and tablets, are a strong driver for e-commerce conversions and purchases. With the rise of 5G technology and faster internet speeds, video, and native ads are becoming increasingly popular. The market must address these challenges through technological expertise and strong infrastructural facilities to ensure a secure and transparent future for digital marketing. Thus, such factors will impede market growth during the forecast period. 

Market Companies and Competitive Insights

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.

Segment Overview

The market 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. 

• Type Outlook
  • Search
  • Display
  • Video
  • Others

• End-user Outlook 
  • Large enterprise
  • SMEs

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile 
    • Brazil
    • Argentina

Market Analyst Overview:

Mobile advertising is a significant segment of the digital marketing industry, with various platforms and techniques available for marketers to reach their audience. The 5G technology and advancements in Augmented Reality (AR) and Virtual Reality (VR) are driving innovation in mobile advertising. Advertisers use Androids and iOS systems to deliver ads through apps and mobile websites. Advertisers can target specific audiences based on demographics, interests, and locations using advanced technologies like geolocation and device identification. Conversely, marketers can use programmatic advertising to automate the buying and placement of in real-time.

Further, mobile advertising is essential for businesses as people spend more time on their mobile devices. Marketers can leverage mobile advertising to increase brand awareness, generate leads, and drive sales. Additionally, mobile advertising offers measurable results through metrics like click-through rates, impressions, and conversions. Advertisers can use various mobile ad formats, including display ads, video ads, native ads, and rich media ads, to engage their audience effectively.

Moreover, mobile advertising platforms like Google AdMob, Facebook Audience Network, and InMobi offer extensive reach and targeting capabilities. In conclusion, mobile advertising is a dynamic and evolving market that offers businesses an effective way to reach their audience and achieve their marketing objectives. With the increasing use of mobile devices and advancements in technology, mobile advertising is set to become even more crucial in the future.

Further, the market is experiencing significant growth, driven by the widespread adoption of digital video, particularly in sectors such as healthcare, education, travel and tourism, and automotive. With the rise of mobile marketing and the proliferation of online platforms, the tech industry is witnessing a surge in operations roles to bridge the skills gap. Companies like Apple are incorporating AI into their strategies to deliver interactive ads through various formats like in-stream, out-stream, and rewarded video ads. However, challenges such as consumer privacy concerns and regulatory changes necessitate a shift towards leveraging first-party data over third-party cookies. With advancements in technology, personalized advertising is becoming more prevalent, leading to higher user engagement and brand loyalty.

Market Scope
Report Coverage	Details
Page number	167
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 12.54%
Market growth 2023-2027	USD 290.16 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	12.0
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 49%
Key countries	US, China, India, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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.
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 the forecast period.
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.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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