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Mobile Advertising Market Size, Share & Industry Analysis, By Advertising Type (In-App Ads, Mobile Rich Media, Video Ads, Banner Ads, Others), By Vertical (Retail, Media & Entertainment, Healthcare, BFSI, E-Commerce, Travel & Tourism, Automotive, Others), and Regional Forecast, 2019-2026

Region : Global | Format: PDF | Report ID: FBI102496

 

KEY MARKET INSIGHTS

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The global mobile advertising market size stood at USD 44.12 billion in 2018 and is projected to reach USD 408.58 billion by 2026, exhibiting a CAGR of 32.5% during the forecast period.

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The adoption of mobile advertising (ad) platforms is witnessing exponential growth in every industry vertical, such as retail, healthcare, BFSI, travel and tourism, automotive, e-commerce, among others. The brands are more interested in adopting advertisements through mobile as it directly targets the customer and has a better return on investments.


In addition, the demand for smartphones is growing year on year. Smartphones with advanced features are available at a minimum cost. The availability of internet connection is also increasing in every country. Customers are always connected to their mobiles and are spending a good amount of time on those. In addition, smartphones are expected to be a prominent device where people watch videos today.


MARKET TRENDS


Innovative Video Ads Are Likely to Attract Customer Attention


The introduction of video ads format such as vertical videos, 360-degree videos, and augmented reality & virtual reality supported videos are expected to take the mobile video advertising (ads) market to the next level. The application of these formats mentioned above will deliver an interactive and immersive experience to the customers. For instance, service providers such as travel & tourism, fashion retailers, or entertainment providers can offer high-quality video ads through 360 degree or vertical videos by showing the views of virtual holiday destinations, product trials, or movie trailers. This will also help to create a large customer base and generate more leads. Advertisers are offering such advanced video ad formats owing to the rising customers’ emphasis on the viewability of the content, which is resulting in high user experience and increasing conversions compared to the still formats. Thus, today, mobile video advertising is the most preferred choice and is also one of the trends. In addition, the particular brand’s story can be delivered via videos, which can result in an emotional connection between the brand and the customer. This will also help in building the relationship between the brand and viewers and will create a loyal customer base for the company.


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Also, different generations explore the content through different channels, and at present, mobile video advertising is gaining popularity. It can be said that the GenZ invest substantial time on their smartphone and that too, specifically for watching videos through different channels.  Video channels such as YouTube, Facebook, Snapchat, or even Netflix suggest a variety of ads content. The other most prominent video advertising that has entered the market recently, is Tiktok. It is expected to disrupt the major platforms. It is the largest app with over one billion users and has its presence in 150 countries.


The video ads trend will not only create advertisements for YouTube, Facebook, or Tiktok, but it will also boost the method of advertising through videos on smartphones.


MARKET DRIVERS


Location-based Technology is Expected to Drive Innovations in the Market


Advancements in location-based technology have created several opportunities for many other markets. The mobile advertising industry is implementing location-based technology to create an advanced level of customer services by offering them information about nearby products and services. Advertisers are tracking customer location information to provide useful recommendations based on nearby locations. This is helping them to advertise their content to customers with the right message at the right time and place. Location intelligence can help the advertiser to measure the impact of their advertising and response given by the users. To gain the attention of customers, nearby brands can advertise their product deals through location-based advertising, whenever the customer is in the vicinity. Overall, with location-based advertisements, users will be targeted through different strategies and more relevant and personalized content. Google LLC is one of the players to introduce location-based mobile advertisements. With Google’s location-based advertising platform, users can get personalized recommendations via the opt-in feature. A user can receive pins from the roadside stores or restaurants and can get to know about the offers and special deals available. It is also expected that customers, too, are in search of related promotions and offers but resist, as it will also attract irrelevant information. For instance, a national craft retailer in the U.S. campaigned on the retail roadshow. The strategy was to stop at a particular location for creating awareness of their product and brand. With the help of more than 400,000 opt-in SMS subscriptions, the company was able to provide information about where they would be in a certain location.


Rising Demand for Apps for Accessing Social Media, Music, & eBook is Expected to Boost the Market


The rising adoption of smartphones is changing the way people communicate or socialize. Smartphone users can access internet content and services through apps. People are performing various types of tasks such as reading e-books, listening to music, watching videos, accessing social media, playing games, shopping, and others, through different apps available on all the application stores. In addition, with the advancements in technology, people can purchase food, clothes, and even furniture through apps on mobile. Smartphone users spend their maximum time on surfing apps.


The brand wants to be present where their customers are present. Advertisers get multiple layers of information such as shopping interests, hobbies, liked brands, and more about their customers as they use these apps. Through this information, advertisers offer related products or services advertised to the users in the form of banners, videos, images, among others. It is estimated that in-app advertising in games is surging and thus, advertisers are highly investing in the ad space. Mobile in-app advertisers are offering credits such as rewards, extended game time, and others for watching thirty seconds of video ads. This is one of the mobile advertising market trends that is expected to uplift sales during the forecasted period.


MARKET RESTRAINT


Advertising through mobile is Likely to Raise the Privacy Concerns Among the Customers


The market is increasing year on year owing to its various types of advertisements to engage the customer. However, customers are raising significant privacy concerns for the above mentioned. For instance, when a user searches for products or services on browsing channels through their mobile, the user receives ads about related product on another mobile app. This has created a huge concern for the customers and the government.


To overcome such issues, governments across the world have started implementing regulations of data privacy, where the advertisers or advertising channels need to take permission from the users to collect their data. In addition, apps developers are offering the opt-in feature for the customer to disable or receive the suggested ads based on the search results of the user. However, customers are still hesitant for subscribing to the ad alerts owing to data breaching, which is expected to lower the demand. 


SEGMENTATION


By Advertisement Type Analysis


The in-app Ads and Video Ads Are Expected to Generate Maximum Revenue


In-app ads, mobile rich media, video ads, banner ads, and others (native ad, reward ad, etc.) are considered in the advertisement type criterion.


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Among the various advertisement types, in-app advertising segment is expected to witness high adoption by the advertiser during the forecast period. These ads help to create a positive impact on the users by providing enhanced graphical features. They are used to target customers where they spend their maximum time. Today's generation is spending more time on mobile apps for various reasons such as socializing, gaming, shopping, and reading. Thus, in-app spending is expected to increase by advertisers. Thus, it would boost the growth of in-app mobile advertising segment.


Further, mobile video advertising is considered as one of the trending advertising segments. The digital video market is experiencing substantial growth. Mobile is a mini platform to access videos, but it is also gaining traction as a video advertising platform. YouTube is the leading platform for video advertising. Video advertising is very impactful and engaging when presented with good and related content. Video advertising through mobile phones is likely to drive the market in the near future. For instance, one of the prominent examples of mobile video ads was implemented by Nissan Auto. The company featured a video with its newly launched SUV along with various hotspots, where users can tap the screen and access related information. The company mentioned that the video ad created more than 90% of consumer engagement.


Many advertisers still use banner advertisements and advanced interactive banners are supporting the mobile advertising market growth. Mobile rich media is also gaining traction owing to its immersive and interactive video and audio advertisements. For instance, Ponds introduced its first augmented reality equipped mobile advertisement, an interactive ad that traces the user’s skin and detects acne-prone areas.


By Vertical Analysis


Travel & Tourism is Expected to Increase Spending in the Mobile Advertising Market


The vertical segment is categorized into retail, media & entertainment, healthcare, BFSI, e-commerce, travel & tourism, automotive, others (telecom, education, etc.).


The travel and tourism industry is highly adopting mobile advertising channels to reach every customer. The rising number of travel and tourism companies are promoting their tourist destinations through various marketing strategy. These companies have identified its importance to reach the customers easily. For promoting the videos of tourist destinations, the market is witnessing a high adoption. Interactive advertising boosts customer experience and creates an emotional impact on the viewers. The companies are highly spending in developing engaging content for the customers to create an urge to visit those advertised tourist destinations. In addition, tourists can be informed about the restaurants and other destinations near them. The positive results of the conversion rate and click-through rate are increasing, which is increasing the investment in the market.


REGIONAL ANALYSIS


Global mobile advertising market scope is classified across five regions namely North America, Europe, Asia Pacific, Middle East and Africa and Latin America


North America mobile advertising market is expected to occupy maximum revenue share in the global market. The region is expected to offer more mobile ad spending as compared to others. The presence of major companies such as Google LLC, Facebook, Inc., among others in US is expected to increase the market revenue in the country. In US, spending on digital channel is expected to overtake the spending on television very quickly. This high adoption is occurring because of the tech-savvy people in the country. Competition in the gaming industry in North America is increasing owing to which many advertisers are offering reward ads. Through these ads, brands are focusing on keeping the customer engaged with games and are rewarding them for watching these ads by giving extra points, unlocking the games next level, and many more.


North America Mobile Advertising Market Size, 2018 (USD Billion)

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Europe mobile advertising market is likely to grow steadily in the forecasted period. The high adoption of smartphones for daily tasks is expected to boost the market in Europe. The U.K. is highly adopting different mobile adverting channels to reach out to its customers. Germany is likely to gain traction of mobile advertising platforms. Various companies are collaborating with advertisers to reach customers through mobile advertising networks. For instance, Telefonica S.A. is collaborating with different adtech companies to gain the market share.


Asia Pacific mobile advertising market is the fastest-growing region in the market. The rising market of smartphones, along with the provision of good telecom infrastructure, mobile internet users are expected to increase. Owing to the highest smartphone market, China is the fastest-growing country after the U.S. in the market. India's market is expected to grow steadily. The video advertising market is growing in India. Also, the growth of video advertisers such as TikTok are expected to boost in India. In addition, countries such as China, Japan, and India have generation Z demographics, which is creating high demand for various apps. Thus, in-app advertising is expected to grow in the APAC region. APAC is expected to overtake the European market in the forecasted period.


Latin America mobile advertising market is likely to increase its digital ad spending during the forecasted period. The smartphone market has huge demand in this region. Brazil and Argentina are investing huge sums in the market. Ruffles, a renowned potato chip company, boosted its sales in Brazil with its augmented reality mobile game, AmiGo. The Middle East and Africa are also expected to grow slowly but steadily in the forecasted period.  However, various telecom companies are entering South Africa and are expected to augment the adoption for the forecasted period.


KEY INDUSTRY PLAYERS


Facebook, Inc. is offering targeted solutions for customer engagement and result-oriented strategies


Facebook, Inc. is redefining and expanding its targeting capabilities to attract more brands to the social media platform. The company is expanding its offering by providing video ads and offering a preview of it on Instagram. It is also offering performance-oriented advertising by on mobile app ads and is likely to offer programmatic solution FBX.


May 2019 – Facebook, Inc., in partnership with advertisement providers such as Ogilvy, Wunderman Thompson, McCann, and Mullen Lintas, Leo Burnett, in India launched ‘Thubmstoppers’ for storytelling in mobile advertising. This will be used to inspire customers by offering short stories that will build an emotional connection between the brand and the viewers.


September 2019 – Facebook, Inc. launched polls and payable units in its mobile advertising platform. The company added poll feature for its Instagram ads. For interactive video ads, the company came up with payable solutions to attract the targeted audience.


List of the Key Companies Profiled:



KEY INDUSTRY DEVELOPMENTS:



  • October 2018 InMobi Ltd. acquired Sprints mobile ad platform ‘Pinsight Media’. The company is likely to use Pinsight’s information on network-level mobile. Pinsight offers customer data to the advertiser for advertising on smartphones.

  • February 2018 Chartboost, Inc. announced the formation of its creative team under the its Creative Studio. It would develop mobile branded videos and interactive content. The company expects to boost 60.0% of the client’s conversion rates.


OVERVIEW OF THE COMPETITIVE LANDSCAPE


Major Companies Are Offering Different Strategic Plans to Attract the Brands for Targeting Relevant Customers


The major companies in the market are Google LLC, Facebook Inc., Chartboost Inc., Matomy Media Group Ltd., Inmobi Technologies Private Ltd., Smaato, Inc., Epom Ltd., and Mobvista International Technology Ltd. These companies are likely to hold more than 50.0 percent of the mobile advertising market share. Majority of players have their presence in the U.S.


The providers are expanding their solutions for attracting customers by the brands. Companies are collaborating to offer precise and relevant customer base for targeting the suitable customer. They are also investing in advancing the quality of videos, displays, and banners to offer indulging and interactive experience. In addition, advertisers are focusing on providing relevant and high-quality content.


FUTURE OUTLOOK


The future of mobile advertising is very promising, along with better customer engagement and return on investment. Smartphones have encouraged digital advertisers to attract customers directly through the channels that they are using. Intending to generate more revenue and offer competitive strategies, the advertisers are shifting towards mobile advertising. It is expected to cater to specific content as per the needs of the customers. The companies are also aiming to cater to better quality advertising engagement along with providing relevant content to its users. Advertisers are integrating artificial intelligence called programmatic mobile advertising, which will provide a personalized level of targeted content to its users.


REPORT COVERAGE


An Infographic Representation of Mobile Advertising Market

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The mobile advertising market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies that are being deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader to gain in-depth knowledge about the market.


REPORT SCOPE & SEGMENTATION








































ATTRIBUTE



  DETAILS



Study Period



  2015 - 2026



Base Year



  2018



Forecast Period



  2019 - 2026



Historical Period



  2015 - 2017



Unit



  Value (USD Billion)



Segmentation



By Advertisement Type



  • In-App Ads

  • Mobile Rich Media

  • Video Ads

  • Banner Ads

  • Others (Native Ads, Reward Ads, etc.)



By Vertical



  • Retail

  • Media & Entertainment

  • Healthcare

  • BFSI

  • E-Commerce

  • Travel & Tourism

  • Automotive

  • Others (Telecom, Education, etc.)



By Region



  • North America (U.S. and Canada)

  • Europe (U.K., Germany, France, and Rest of Europe)

  • Asia Pacific (Japan, China, India, Southeast Asia and Rest of Asia Pacific)

  • Middle East & Africa (South Africa, GCC and Rest of Middle East & Africa)

  • Latin America (Brazil, Mexico, Argentina and Rest of Latin America)



 


Frequently Asked Questions

Fortune Business Insights says that the market was valued at USD 44.12 billion in 2018.

Fortune Business Insights says that the market is expected to reach USD 408.58 billion in 2026.

Growth of 32.5% CAGR will be observed in the market during the forecast period (2019-2026)

Within the industry criterion, the media & entertainment segment is expected to lead during the forecast period.

Location-based technology is expected to primarily drive the market growth.

Google LLC, Facebook, Inc., Mobvista International Technology Ltd., Inmobi Technologies Private Ltd., and Smaato, Inc. are the top companies in the market.

The in-app ads segment is expected to grow significantly at the highest CAGR.

The revenue of the market in North America in 2018 was USD 16.07 billion.

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