Ever imagined mobile advertising hitting business by $1.2 million by 2020? Ah, the number speaks it all. But, let’s know what actually mobile advertising is. The mobile advertising spectrum ranges from short message service (SMS) text to interactive advertisements. Mobile advertising is a subset of mobile marketing.

Mobile networks identify related mobile profiles and preferences and display corresponding advertisements when consumers download and use data services like games, applications (apps) or ringtones.

The Mobile Marketing Association (MMA) is a non-profit global trade association that fosters mobile marketing and advertising technologies. It regulates associated terms, specifications and best practices. MMA also oversees global mobile advertising units in messaging, applications, video, television and also on the Web.
Mobile advertising can be done in the following ways:

  • Mobile Web: Text tagline ads, mobile Web banner ads, WAP 1.0 banner ads, rich media mobile ads
  • Multimedia Messaging Service: Short text ads, long text ads, banner ads, rectangle ads, audio ads, video ads, full ads
  • Mobile Video and TV Advertising Units: Ad breaks, linear ad breaks, nonlinear ad breaks, interactive mobile video and TV ads
  • Mobile Applications: In-app display advertising units, integrated ads, branded mobile applications, sponsed mobile applications

According to Gartner, the mobile advertising market will continue to be driven by smartphones and tablet devices, which has enhanced its growth to $19 billion by 2015.

When we looked at the general trend for mobile advertising revenue, we see that Search is and will continue to be the fastest growing type of mobile ads. Primarily because the major platform for mobile Search ads is Google, which is the company with the biggest mobile ad revenue share on the market. By the year 2018, the total mobile ad revenue is projected to reach $42 billion, more than 300% growth from $12.5 billion as of 2014. Video ads revenue is also projected to double from $1 billion in 2015 to $1.7 billion in 2016.

The eMarketer research data suggests that Google continues to be a leader, even though it loses its share gradually with 37.66% in 2013, only 35.17% in 2015 and it is projected that its share will continue to decline this year. Facebook is second in the list and year over year it gains and loses one or two percent, staying within 16-18%. Almost all other companies on the chart have a one-digit share and see only a slight decrease and increase of one percent. LinkedIn is the only company outside of the Google-Facebook-Twitter trio that experienced a significant mobile advertising revenue share growth, with 0.05% in 2013 and 0.36% in 2015, which is 700% growth.

Because of the exponentially growing popularity of mobile apps, mobile app installs’ ads have become multi-billion dollar business within a few years. The Apple’s app store was launched in 2008, by 2014 mobile app install ads revenue reached $3.6 billion. By the year 2019, the total mobile app install ad revenue is projected to almost double this number and hit $6.8 billion and so it can hit $1.2 billion by 2020. The mobile advertisement is still growing and there is much more to see.

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