While the internet will eventually outstrip outmoded television to become the paramount global advertising medium in 2017, marketing on desktop computers is conjectured to dwindle in the time ahead.
The advertising agency Zenith predicts the coming years to be icy for the majority of advertising mediums except for the mobile phone. Mobile advertising is the only platform that is estimated to increase its share in the overall market from 15.2% to 26.4% between 2016 and 2019.
Mobile advertising is snowballing faster than all other digital advertising formats worldwide. The advertisers are investing to grab the attention of the mushrooming segment of “mobile-first” users.
New Data reveals that mobile ad spend will transcend $42 billion in 2018, escalating by a five-year compound annual growth rate (CAGR) of 43% since 2013.The graph below depicts the forecast of digital advertising revenue.
As per the report from the Interactive Advertising Bureau, the mobile ad business is booming. The global mobile advertising industry grew over 65 percent last year. It was worth $31.9 billion in 2014, up from $19.3 billion in 2013. And it is expected to grow.
Mobile devices are an inevitable part of consumers’ lives across the globe and the numbers above reflect that this medium holds great power.
Challenges in Mobile Advertising
Mobile advertising accounts for more than half of digital ad spending, and marketers continue to perceive its increased value in the world of advertising. While there are advantages, there are hurdles as well. A notable obstacle in mobile advertising is that most companies have not yet optimized their own assets for mobiles. The bulk of clients expend a huge sum to drive their consumers to their mobile websites and apps. Since these sites and apps are substandard, they frustrate the users and make them leave.
According to AdRoll, 41% of US marketers believe the lack of attribution transparency is also a major challenge. Moreover, more than a third of respondents said that several users or consumers not converting on mobile is also a worry.
There is still a significant disproportion between the amount of time people spend on their smartphones and tablets, which is rising with passing time, and the amount of ad money spent on the medium, which is comparatively scanty.
The gap is expected to abate considerably as the inclination for mobile-optimized ad formats such as interactive rich media and native ads is increasing, the targeting is improving, and more and more advertisers are keen on learning how to effectively use this platform.
Future of Mobile Advertising
When mobile usage was growing in the past few years, there were concerns whether companies like Facebook could successfully monetize this game. Turned out, they could.
Facebook said, 76 percent of its ad revenue came from mobile. Likewise, Twitter imputes mobile for 88 percent of its total ad revenue. Also, Google believes that mobile search advertising is one of the prominent drivers of its overall revenue growth.
As more advertising shifts online, profiting companies, a copious amount of money is being channeled into mobile and social media marketing.
Video advertising is highly likely to proliferate by 21% every year between 2016 and 2019, and social media by approximately 20% during that period.
It is projected that the internet will account for a prodigious 42.2% of global ad spending by 2019 and several companies are expected to come on strong in mobile advertising in the near future as they fine-tune their offerings.