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The global mobile advertising market size was USD 73.55 billion in 2020. The global market size is inclusive of several mobile type of advertising solutions such as white label ad server and powerful Real-Time Bidding (RTB) bidder solution provided by Epom and mobile advertising services such as mobile search advertising, display advertising, shopping campaigns, programmatic advertising, and display advertising among others. The global impact of COVID-19 has been unprecedented and staggering, with mobile type of advertising witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 28.9% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 96.46 billion in 2021 to USD 782.12 billion in 2028 at a CAGR of 34.8% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
COVID-19 to Create Unprecedented Opportunities for Market Players in Long-term
As far as the industry verticals are considered, the mobile marketing business witnessed the highest loss across travel & tourism, automotive, retail, and finance verticals. The primary reason for this is closed international borders, lockdowns across inter-state traveling, and others. However, several countries are now allowing tourists to visit, resulting in increased usage of mobile apps, thus ultimately boosting the demand for mobile marketing.
On a long-term basis, the global market is expected to thrive in the forecast period. Mobile advertisement proves to be a critical and cost-effective measure to ensure sturdy business continuity in the pandemic situation. In August 2020, IDC stated that the smartphone market would experience a CAGR of 1.7% in the five-year forecast with a strong 5G push. As a result of the 5G push, the in-app ads, video ads, and mobile reach media are projected to boost in the foreseeable future.
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Incorporation of AR & VR with Mobile Advertising Platforms to be a Popular Trend
Augmented Reality (AR) and Virtual Reality (VR) are observed to be the two major technological platforms for marketing businesses worldwide. These platforms offer advanced methods for marketing strategies and also help to boost the practical knowledge of the employees, allowing them to think out of the box; hence, they are expected to become the key market trend in the future ahead.
According to the study of Boston Consulting Group (BCG), the AR audience has tremendously grown in the last three years, from 80 million AR monthly active users (MAU) in 2017 to 120 million AR monthly active users (MAU) in 2020. This indicates that augmented reality is likely to see unprecedented adoption in the upcoming years.
Similarly, Virtual reality (VR) plays a significant role in bridging the gap between experience and action while offering digital experience to promote the products and services. VR changes the relation between brands and consumers, as people seek VR brand experiences rather than using the ad blockers, thus surging mobile marketing whilst implementing VR in the global market.
Rising Adoption of Location-based Technology to Enhance Customer Service Offerings
The growing adoption of location-based services for mobile advertising is driving the market growth. Location-based marketing uses mobile device users’ past and current location to show relevant content. The rising advertisement expenditure across the globe is the primary factor supporting the mobile advertising market growth. Brands and businesses are making huge investments in advertising & marketing activities to enhance the customer base and their brand awareness.
Higher Penetration of Social Media & E-commerce to Boost Market Growth
The rapidly growing e-commerce industry is driving market growth. The 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 UN trade and development, global e-commerce sales reached USD 26.7 trillion in 2019, around 4% up from 2018. This is likely to provide a significant opportunity for mobile marketing providers.
Brands offering products on e-commerce websites offer significant discounts and coupons to attract customers and increase brand awareness & loyalty while surging the market in the near future.
Privacy Concerns for Customers’ Confidential Data to Hinder Adoption of Mobile Advertising Technologies
The growing cybersecurity attacks are leaking the private information of users 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 for the confidential data curbs consumers’ preferences while hindering the global market over the forecast period.
Video Ads and In-app Ads to be Most Prominent Ad Type in the Near Future
Based on the advertisement type, the market is divided into in-app ads, mobile rich media, video ads, banner ads, and others (native ad, reward ad, and more). Among all the ad types, the in-app ads segment is expected to hold the highest market share. The in-app ads are primarily used by businesses to target the customers where they spend their maximum time, such as socializing, gaming, shopping, and reading.
The video advertising segment is expected to gain demand. The segment is gaining traction attributed to its capability to deliver interactive audio and video advertisement. YouTube is regarded as a leading platform for video advertising by advertisers.
Furthermore, many advertisers still use banner ads of other interactive posters. However, the availability of cost-effective advertising platforms such as in-app and video advertising is likely to impede the adoption of banner ads in upcoming years.
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Media and Entertainment Industry to Drive Adoption of Mobile Advertising
By vertical, the market is categorized into retail, media & entertainment, healthcare, BFSI, e-commerce, travel & tourism, automotive, and others (IT & Telecomm, and others). The e-commerce segment is anticipated to grow exponentially due to increasing customer spending and the rising B2C market. The retail segment is expected to hold a significant market share.
Media & entertainment, and travel & tourism verticals are also growing at a substantial growth rate. The tourism companies promote tourist destination videos that boost the customer experience, creating a positive impact on new customer capture and retention.
Media & entertainment is likely to be the potential use of mobile marketing. For instance, Shemaroo, India based OTT platform created relevant content for their viewers by releasing the ‘Watch from Home’ section on their app. Similarly, many content providers used mobile engagement platforms such as MoEngage for advertising.
North America Mobile Advertising Market Size, 2020 (USD Billion)
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Geographically, the market is fragmented into five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
North America is expected to hold a significant revenue share in the global market. Big corporations in the U.S., such as Google LLC and Facebook, Inc., are predicted to boost market revenue in the country. In the United States, digital channel spending is predicted to surpass television expenditures shortly.
Asia Pacific is forecast to emerge dominant in the global market during the forecast period. The rising smartphone market across India, China, and Southeast Asian countries is expected to boost internet usage in the forecast period. This, in turn, is propelling the demand for mobile advertising across the region. As per the secondary research, approximately 2.8 billion people subscribed to mobile services, and by 2025, the number is expected to reach 3.1 billion. Additionally, video advertisers such as TikTok, Snapchat, and in-app ads across Facebook, Google, and others boost the market growth across the country.
Europe is likely to show moderate growth in the coming years. According to IAB Europe, a European-industry association for marketing ecosystem and digital advertising, digital advertising in Europe grew approximately by 12.3% in 2019. The increase in digital advertising was driven by mobile & social spend, and out-stream video.
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The Middle East & Africa and Latin America are anticipated to grow significantly in the forecast period due to rising spending on digital ads across South Africa, Saudi Arabia, UAE, and other countries.
Key Players to Drive Acquisition Strategies to Expand Mobile Advertising Market Share
Leading mobile advertising companies are continuously expanding and diversifying their operations with strategic acquisitions of local & regional companies, collaborations, joint ventures, and licensing arrangements amongst the SMEs. This, in turn, is helping them to identify the targeted customers across existing and unattainable markets. For instance,
March 2021 – InMobi partnered with Gojek tech to enhance advertising, identity resolution, and consumer intelligence for brands across Southeast Asia. Brands can deterministically measure the impact of sales of their online advertising across platforms by utilizing InMobi’s mobile intelligence and Gojek Tech’s in-app engagement signals. Gojek Tech is a mobile on-demand payment and service platform that works specifically across Southeast Asia.
May 2019 – Smaato, Inc. partnered with Liftoff, a performance-based mobile app retargeting and marketing platform that introduced the latest in-app ad formats. By utilizing the latest formats, buyers can optimize in-app ad campaigns to maximize customer engagement rate and drive conversations.
An Infographic Representation of Mobile Advertising Market
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The global 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 the advanced market in recent years.
Value (USD billion)
Ads Type, Vertical, and Region
By Ads Type
The market is projected to reach USD 782.12 billion by 2028.
In 2020, the market stood at USD 73.55 billion.
The market is projected to grow at a CAGR of 34.8% in the forecast period (2021-2028).
The in-app ads segment is projected to lead the market.
The higher penetration of social media & e-commerce and the rising adoption of location-based technology are expected to drive the market.
Facebook, Alphabet, Inc. (Google), InMobi, Mobvista, Chartboost, AppLovin, Twitter, Inc., Smaato, Inc., Epom, and Mintegralare major players in the global market.
North America is expected to hold the highest market share.
Asia Pacific is expected to exhibit the highest growth rate during the forecast period.
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