Mobile Advertising Market Size, Share & COVID-19 Impact Analysis, By Format Type (Search, Display, Digital Video, Others), By Vertical (Retail & E-Commerce, Media & Entertainment, Healthcare, BFSI, Education, Travel & Tourism, Automotive, Others), and Regional Forecast, 2022-2029

The mobile advertising market size was valued at USD 117.97 billion in 2021. The market is projected to grow from USD 144.08 billion in 2022 to USD 621.63 billion by 2029, exhibiting a CAGR of 23.2% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with mobile advertising experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a rise of 21.4% in 2020 compared to 2019.

The report covers solutions such as Facebook app ads, Google’s YouTube ads, Chartboost’s advertising platform, and AppLovin’s software-based platform–in-app advertising. Advertisers rapidly adopt mobile ads to promote and run campaigns specifically designed for mobile devices. By accepting the mobile advertising strategies, companies can promote their services and products to the targeted audience.

COVID-19 Impact

Increased Screen Time due to COVID-19 Limitations to Create Unprecedented Long-Term Opportunities for Market Players

Advertising companies suffered maximum losses in the travel & tourism and automotive sectors. For instance, in January 2021, the United Nations World Tourism Organization stated that the loss of nearly USD 1.0 billion/month has been witnessed in the EU alone.

Whereas e-commerce, media & entertainment verticals witnessed explosive growth attributed to the rising pay-per-click, click-through rate and rising ad spending across gaming, multimedia, music, news and online shopping categories. However, several countries are now permitting tourists to come, resulting in greater use of mobile apps and, as a result, increased demand for mobile ads.

The global market is expected to grow in the long term over the forecast period. Mobile ads appear to be an essential and cost-effective technique to ensure business continuation in the pandemic crisis. In December 2021, Centaur Media plc stated that users continued to scroll and engage with content, resulting in a 75% increase in mobile ad expenditure. Also, smartphones currently account for 64% of all digital expenditure, compared to roughly 55% in the first half of 2020. Therefore, as a result of increased smartphone usage, mobile ads are expected to witness higher growth in future.

LATEST TRENDS

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Incorporation of AR & VR with Mobile Advertising Platform to Bolster Market Progress

Augmented Reality (AR) and Virtual Reality (VR) are often regarded as the two most important technology platforms worldwide for marketing enterprises. These platforms provide innovative ways for advertising techniques and improve employees' practical knowledge, allowing them to think creatively; as a result, they are projected to become an important market trend in the future.

According to the May 2020 study by AR Insider, 19% of U.S adult consumers have already tried VR. This number is up from 16% in 2019’s study. In addition, 31% of respondents say they use virtual reality at least once a month, indicating that they use it frequently. This factor indicates that virtual reality is likely to see unprecedented adoption in the coming years.

VR plays a significant role in bridging the gap between experience and action while offering digital experience to promote products and services. VR changes the relationship between brands and consumers, as people seek VR brand experiences rather than using the ad blockers, thus surging mobile advertisements implementing VR in the global market. In May 2021, Meta Platforms, Inc. began testing ads in the Oculus mobile app to provide developers with a new method to promote their virtual reality applications.

DRIVING FACTORS

Rising Adoption of Location-based Technology Enhances Customer Service Offerings

The growing adoption of location-based services is driving the market growth. Location-based marketing uses mobile device users’ past and current locations to show relevant content. The rising advertisement spending across the globe is the primary factor supporting the market growth. Brands and businesses are making huge investments in advertising & marketing activities to enhance the customer base and their brand awareness

• For instance, in 2020, Amazon Inc. spent USD 22.0 billion in marketing & advertisement activities, increasing around USD 3.0 billion from the previous year. The growing advertisement spending by leading e-commerce companies is anticipated to drive the market in the coming years.

Higher Penetration of Social Media & E-commerce to Boost Market Growth

The rapidly growing e-commerce industry is driving the mobile advertising market growth. COVID-19 has positively impacted the global e-commerce industry, as consumers prefer online channels to purchase essential products rather than stepping out of the house. According to the May 2021 statistics by UN trade and development, the rapid growth of e-commerce in the face of COVID 19's movement restrictions boosted online retail sales' proportion of overall retail sales from 16% to 19% in 2020. This factor is likely to provide a significant opportunity for the market players.

Brands offering products on e-commerce websites offer significant discounts and coupons to attract customers and increase brand awareness & loyalty while boosting the market in the near future.

RESTRAINING FACTORS

Privacy Concerns for Customer’s Confidential Data to Hinder Advertising Technologies Adoption

The growing cybersecurity attacks are leaking users' private information without their knowledge. For instance, in January 2021, Juspay, the company that processes payments for Swiggy and Amazon, reported a data leak of over 100 million credit and debit cardholders. The leak included the user’s name, e-mail, contact information, and credit and debit cards. Such privacy concerns regarding confidential data limit consumers’ preferences while hindering the global market over the forecast period.

SEGMENTATION

By Format Type Analysis

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Digital Video Ads to Gain Popularity in Near Future Owing to its Ability to Deliver Interactive Audio & Video Ads

Based on format type, this market is divided into search, display, digital video, and others (lead generation, audio, and others). The search segment is expected to hold a prominent mobile advertising market share among all the format types. Search ads are tailored to match key search terms (also known as keywords) entered into search engines. This targeting capability attracts the popularity of search advertising among advertisers. Since consumers frequently utilize a search engine to locate and evaluate purchasing possibilities before making a purchase decision.

Digital video advertising is expected to gain the fastest growth rate during the forecast period. The segment is gaining traction attributed to its capability to deliver interactive audio and video advertisements. YouTube is regarded as a leading platform for video advertising by advertisers.

Further, many advertisers still use display ads for interactive banner ads and rich media ads. These are usually image-based, text-based, or video advertisements that encourage users to visit a landing page and take action (for example, make a purchase). Additionally, various advertising companies are using display advertising to promote their brands.

By Vertical Analysis

Retail & E-commerce Industry to Drive the Product Adoption

By vertical, this market is categorized into retail & e-commerce, media & entertainment, healthcare, BFSI, education, travel & tourism, automotive, and others. Retail & e-commerce is anticipated to grow exponentially due to increasing customer spending and the rising B2C market. The media & entertainment segment is expected to hold a significant market share.

The travel & tourism vertical is also growing at a substantial growth rate. The tourism companies promote tourist destination videos that boost the customer experience, positively impacting new customer capture and retention.

Media & entertainment is likely to be the potential use of mobile ads. For instance, in June 2020, Disney+ Hotstar, a media and entertainment app, partnered with Indian fitness firms such as Cult. Fit, Brilliant Wellness and Sarva Yoga to broadcast personalized exercise videos for stay-at-home folk. Similarly, many content providers use mobile engagement platforms such as MoEngage for advertising.

REGIONAL INSIGHTS

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Geographically, this market is fragmented into five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America is expected to hold the highest revenue share globally during the projection period. Big corporations in the U.S., such as Google LLC and Facebook, Inc., are predicted to boost market revenue. In the U.S., digital channel spending is predicted to surpass television expenditures shortly.

The European market is likely to show moderate growth in the coming years. According to the May 2021 report by IAB Europe, the European-level industry group for the digital advertising and marketing ecosystem, it estimated that digital advertising expanded by 6.3% in 2020. An increase in digital advertising was driven by mobile & social spending, and out-stream video.

Asia Pacific is forecast to emerge as the fastest-growing market during the forecast period. The rising smartphone market across India, China, and Southeast Asian countries are expected to boost internet usage in the forecast period. This factor is propelling the demand for mobile ads across the region. As per the GSMA 2021 research, ~1.6 billion individuals subscribed to mobile services in 2020; by 2025, the number will reach 1.8 billion. Additionally, video advertisers such as TikTok, Snapchat and in-app ads across Facebook, Google, and others boost the market growth across the region.

The Middle East & Africa is anticipated to grow significantly in the forecast period due to rising spending on digital ads across South Africa, Saudi Arabia, UAE, and other countries. For instance, according to a July 2020 report by Eureka Digital, the advertising spending on digital advertising in Saudi Arabia is anticipated to reach around USD 906 million in 2020.

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Similarly, South America is also expected to show steady growth during the projection period due to the internet population's rapid growth and rising demand for online products in the region. For instance, according to March 2021 Internet World Stats, 78.8% of the population are internet users in South America, compared to 65.6% globally.

KEY INDUSTRY PLAYERS

Key Players to Drive Acquisition and Collaboration Strategies to Expand Mobile Advertising Market Share

Leading market participants continuously expand their operations with strategic acquisitions and partnerships with local & regional companies, collaborations, joint ventures, and licensing arrangements amongst the SMEs. This factor helps them identify the targeted customers across existing and unattainable markets. For instance,

August 2021 – Smaato, Inc. announced a partnership with HUMAN Security, Inc., a cybersecurity firm. Smaato's integration with HUMAN and Smaato's automated systems that connect with human expertise improve the platform's safety and security for both marketers and publishers.

March 2021 – InMobi and Gojek Tech established a partnership to improve advertising, identity resolution, and customer analytics for Southeast Asia. Using InMobi's mobile intelligence and Gojek Tech's in-app engagement signals, brands can deterministically assess the impact of their online advertising purchases across platforms. Gojek Tech is a Southeast Asia focused mobile on-demand payment and service platform.

List of the Key Companies Profiled:

• Meta Platforms, Inc. (U.S.)


• Alphabet, Inc. (Google) (U.S.)


• Chartboost (U.S.)


• AppLovin Corporation (U.S.)


• Twitter, Inc. (U.S.)


• InMobi (India)


• Smaato, Inc. (U.S.)


• Epom (Ukraine)


• Mobvista (China)


• Mintegral (Beijing)

KEY INDUSTRY DEVELOPMENTS:

• April 2022 – AppLovin Corporation announced its partnership with The Trade Desk, an advertising technology provider. By integrating ALX as a supply source to The Trade Desk's platform, advertisers and agencies will access AppLovin Exchange (ALX), an in-app RTB exchange.


• February 2022 – Google has released an improved Search Ads 360 platform, which would offer more administration choices for users of Google Ads campaigns in a more simplified, integrated interface while also incorporating Google's new advanced advertising technologies. Search Ads 360 is a comprehensive Google Ads management solution that enables ad managers to control all of their projects and campaigns from one place.

REPORT COVERAGE

An Infographic Representation of Mobile Advertising Market

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The market research report provides a detailed analysis of the market. It focuses on key aspects such as leading companies, software types, and leading applications of the platform and services. Besides this, the report offers insights into the mobile advertising market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of this market in recent years.

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