By 2025, GSMA has estimated that more than 5 billion people will have mobile devices, and over half of these connections would be smartphones. With the growth in adoption of smartphones, consumers are also increasingly getting glued to their mobile devices more than ever, this has led to mobile marketing becoming a mainstay of the online advertising sector. Thereby, also taking up an increasing portion of organizational marketing spend, too. Research reports have also shown that marketing organizations have also started spending 22% of their budget on mobile marketing.
Recent research has also shown that mobile advertising spends by mature organizations are slated to increase 21.9% to reach $165.7bn in 2019, making it the second-largest ad channel worldwide across 96 markets, as per WARC’s Adspend Forecast. This shows a significant increase from even ten years ago when mobile marketing was only starting to gain steam as a high-ROI achieving advertisement method.
Why mobile advertising?
With nearly three quarters (72.6%) of internet users accessing the web solely through their smartphone by 2025, mobile advertising has become one of the most effective ways to target and reach customers on the go. IAB Mobile Advertising Revenue & Usage Report 2018 also stated:
Mobile ecosystem accounts for the largest chunk of revenue across all ad formats, search 59%, banner 74%, video 60%, and mobile 73%.
Mobile advertising ecosystem supports the most converting and ROI-driven interactive ad formats that engage and retain users inside the app.