Mobile Advertising Market
P
2017
Mobile advertising market size was valued at $69,781 million, and is expected to reach $243,703 million by 2022, supported by a CAGR of 15.8%. Mobile advertising means transferring of digital advertising content to mobile device users. It is cost-effective and highly targeted towards a specific group of mobile users. Mobile advertisers have realized the opportunities to use the mobile channel to reach the mass audience or an individual virtually from anywhere and anytime. Now, advertisers have more knowledge about their clients than ever before, which increases the effectiveness of a marketing campaign. Further, it enables advertisers to personalize and customize advertising for mobile users.
Increase in the mobile device and mobile internet users, growth in popularity of social media, and time spent on mobile devices drive the market growth. The report includes the study of the mobile advertising market focusing on various growth prospects and restraints, based on the regional analysis. The study highlights Porter’s Five Forces analysis for the market that comprises the impact of suppliers, competitors, new entrants, substitutes, and buyers.
The prominent key players-operating in the mobile advertising market- Applovin Corporation, Avazu Inc., Chartboost Inc., Facebook Inc., Flurry Inc., Google Inc., Inmobi Pte. Ltd., Matomy Media Group Ltd., Millennial Media Inc., and Smaato Inc.
The global mobile advertising market is segmented based on format, category, and geography. Based on the format, the market is divided into search, native social, display, video, and SMS segments. By categories, the market is segmented into arts & entertainment, hobbies & interests, and others (society, science, style & fashion, and technology). Geographically, the mobile advertising industry is segmented into North America, Europe, Asia-Pacific, and LAMEA.
The growth potential of the mobile advertising market size by types of content format such as native social, search, display, video, and SMS is presented in the graph below. Further, this is anticipated to enable key players to focus on the key investment areas. Among formats, the video segment is projected to grow at the highest CAGR of 17.5% owing increase in on-demand video watching population across the globe. Further, this growth is attributed to rise in social media users across the globe.
Mobile advertisers and content creators are projected to develop age-group specific content to target the mass mobile internet population. Further, mobile users’ data collection through categories such as arts & entertainment, hobbies & interests, and style & fashion are anticipated to enable mobile advertising and content developers to develop more personalized messages.
Key players-operating in the mobile advertising industry- are anticipated to create and develop mobile advertising content that can easily support mobile devices used in low internet connectivity areas. This will enable prominent players to target emerging market, such as India where mobile internet connectivity is low as compared to the developed markets, such as the U.S. and the UK.
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Key Market Players | Inmobi Pte. Ltd., Smaato Inc., Millennial Media Inc., Flurry Inc., Applovin Corporation, Google Inc., Avazu Inc., Facebook Inc., Matomy Media Group Ltd., Chartboost Inc. |
The global mobile advertising market is projected to witness healthy growth, especially in North America and LAMEA owing to the increased adoption of mobile devices, shift from traditional advertising to digital methods, and increased awareness among mobile users regarding style & fashion, health, technology, and computing. The market is projected to grow at a substantial CAGR of 15.8% from 2016 to 2022, owing to rise in mobile internet and social media users across the globe.
Prominent players—operating in the mobile advertising industry—are inclined towards developing mobile advertising content in different formats such as video, images, animated and text content, in an effort to attract mobile users to view their advertising content. In addition, key players are anticipated to concentrate on mobile optimization, cross-device solutions, and responsive mobile websites. This is anticipated to create huge growth opportunities for key players.
Unauthorized access to online mobile device users can result in data breaches or theft of confidential information. To prevent such incidences, mobile users deploy or block advertising content to access their information associated with location, interests or hobbies. This, in turn, is projected to limit the mobile advertising market growth across the globe. Moreover, the growth in adoption of ad blocker solutions has adversely impacted the market growth in the last few years. For instance, as per PageFair and Adobe report, in Q2 2015, a number of ad blocking software users has grown 41% as compared to that in Q2 2014. Further, the estimated loss of global advertisement market was $21.8 billion during 2015.Mobile advertisers and content creators are projected to develop age-group specific content to target the mass mobile internet population. Furthermore, mobile users’ data collection through categories such as arts & entertainment, hobbies & interests, and style & fashion are anticipated to enable mobile advertising and content developers to develop more personalized messages. Moreover, to target mobile users especially in the emerging markets such as India and Brazil, prominent players are anticipated to create and develop mobile advertising content that can be easily watched on mobile devices operating in the low internet connectivity areas.
Key players are projected to focus on the acquisition or strategic alliance with startups and well-established local players to expand their market presence and outperform competitors.