Mobile Advertising Market Size, Share & COVID-19 Impact Analysis, By Format Type (Search, Display, Digital Video, and Others), By Vertical (Retail & E-commerce, Media & Entertainment, Healthcare, BFSI, Education, Travel & Tourism, Automotive, and Others), and Regional Forecast, 2023-2030

The mobile advertising market size was valued at USD 144.07 billion in 2022 and is projected to grow from USD 175.62 billion in 2023 to USD 750.21 billion by 2030, exhibiting a CAGR of 23.1% during the forecast period.

The research 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 Created 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 was witnessed in the EU alone.

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

The global mobile ad market is expected to grow in the long term over the forecast period. Mobile advertising appears 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 advertising 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 driving the mobile advertising market growth.

LATEST TRENDS

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Incorporation of AR & VR with Mobile Advertising Platforms to Bolster Market Growth

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. Therefore, 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 that 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 ad blockers, escalating the implementation of VR-based mobile advertisements 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 to Drive the Market Growth

The soaring adoption of location-based services is driving the growth of mobile advertising. 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 2022, Amazon Inc. spent around USD 42.0 billion in marketing & advertisement activities, increasing around USD 9.0 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 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 the United Nations Conference on Trade and Development, 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 adoption of mobile advertising 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 mobile advertising market share over the forecast period.

SEGMENTATION

By Format Type Analysis

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Search Segment to Hold Prominent Share Owing to Rising Popularity

Mobile advertising is done through various format types such as search, display, digital video, and others (lead generation, audio, and others). The search segment is expected to hold a prominent share among all format types. Search ads are tailored to match key search terms (also known as keywords) entered into search engines. This targeting capability is responsible for the growing popularity of search advertising among advertisers. 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 owing 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 Adoption of Mobile Ads

By vertical, the market is divided into retail & e-commerce, media & entertainment, healthcare, BFSI, education, travel & tourism, automotive, and others.

The retail & e-commerce segment is anticipated to grow exponentially due to increasing customer spending and the rising B2C market.

The travel & tourism segment is also growing at a substantial growth rate. Tourism companies promote tourist destination videos that boost customer experience and help companies to attract new customers and retain existing customers.

The media & entertainment segment is expected to hold a significant market share and witness steady growth. 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, the global market is studied across five major regions, North America, South America, Europe, the Middle East & Africa, and Asia Pacific. The regions are further categorized into countries.

North America generated the highest revenue share globally in 2022. 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.

Similarly, South America is also expected to show steady growth during the forecast period due to the rapid growth in internet population 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.

The Europe 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 is 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.

The Asia Pacific is poised 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, around 1.6 billion individuals subscribed to mobile services in 2020; and 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.

According to the Global Ad Spend Forecast report by digital marketing communication company Dentsu International, ad spending in Asia Pacific increased by 11.5% in 2022.

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The Middle East & Africa market is anticipated to grow significantly in the forecast period due to rising spending on digital ads across South Africa, Saudi Arabia, the UAE, and other countries. For instance, spending on digital advertising in Saudi Arabia was anticipated to reach around USD 1,309 million in 2023.

KEY INDUSTRY PLAYERS

Key Players Adopt Acquisition and Collaboration Strategies to Expand their Market Share

Leading market participants continuously expand their operations through strategic acquisitions and partnerships with local & regional companies along with collaborations, joint ventures, and licensing arrangements with 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 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:

• February 2023 – InMobi Commerce entered into a partnership with Point Pickup. The partnership provided product discovery and monetization solutions to Point Pickup’s grocery retail partners to maximize media-derived revenues.


• December 2022 – Daily Yoga entered into a partnership with AppLovin. The aim of the partnership was to advertise the Daily Yoga through AppLovin’s Appdiscovery to optimize the valuable funnel event subscriptions despite iOS challenges.


• July 2022 – Mintegral, a mobile advertising company, introduced its new Playable Ad Editor that allows advertisers to build their own ads from scratch via code free editor.


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

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