14.04.2015

Mobile marketing: the goose that lays the golden eggs

Image | n0nick

In 2016 over 2 billion people worldwide will own a smartphone. The benefits that these handheld devices can offer us mean that the laptop is increasingly having to take a backseat, and businesses are increasingly cottoning on to the fact that the best way they have to communicate with us is through the apps on our phones and tablets.

eMarketer has published a study predicting that next year will see, for the first time in history, over half of the global digital advertising budget being spent on digital advertising.  We will look at some of the trends that suggest that this will not prove to be just a passing phase.

  • Exponential growth. In 2016 more than 100 billion dollars (almost 93 billion euros)  will be invested in mobile marketing, an increase of 430% from 2013. This meteoric ascent is set to continue in the coming years; by 2019 it is expected that mobile advertising will account for 70% of the global digital marketing budget and more than a quarter of the money spent on advertising worldwide.
  • The United States and China: kings of mobile advertising. These two countries currently top the tables in terms of current spending on mobile marketing, and they will continue to do so in the immediate future. According to eMarketer’s predictions, in 2016 these two countries alone will be responsible for 62% of the total spend. American advertisers will invest 40 billion dollars (37 billion euros) more than twice what they spent in 2014. Meanwhile, in China they will invest 22 billion dollars in 2016, three times the 2014 total.

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Image | Wikimedia Commons

Following these two behemoths, the UK, Japan and Germany will remain in the top five of big spenders in mobile advertising. South Korea is currently in sixth position, however Canada and Australia are poised to overtake the East Asian country next year.

  • In Spain mobile advertising will also increase, however not significantly enough to bring the country to the front of the race. In 2014 Spain was 19th on the list of mobile advertising spending, with 101 million dollars, (over 93 million euros), this figure will increase threefold in 2016. That’s to say, Spain is increasing at the same rate as the Asian giant but with a much smaller market.
  • Twitter will overtake Yahoo in earnings from online advertising in the American market. Facebook will account for 25,5% of the overall online advertising in the US, Google 13% and Twitter will take third spot with 5%, overtaking Yahoo for the first time thanks to profits gained from mobile advertising (88% of the total). “They are starting to move into trying to catch ad revenue from a broader base,” explained Martin Utreras a senior analyst at eMarketer.

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Image | Maria Elena

  • The explosion of app install ads from both big and small developers. Developers have to get noticed in a market oversaturated with apps of all kinds. Google Play Store doesn’t intervene too much in order to persuade users to opt for one at the expense of another. For this reason app install ads, in which developers pay whenever a user downloads their application, have become hugely popular.Google saw the potential of mobile advertising and decided to but the company AdMob in 2009 to help developers promote themselves. Facebook and Twitter also want to take advantage of the potential offered by this new medium and offer third parties the chance to advertise on their social networks. Ultimately, a large amount of the advertising business revolves around the world of apps.

The advertising market has undergone a sea change since the arrival of the internet, however the online market is now evolving in order to win you over through the five inch device you carry in your pocket. And if 2015 proves to be the year of wearable technology, the next challenge for advertising will be to reach your wrist.