Why Mobile Advertising Is The Juggernaut Of The Ad-World
Today, mobile advertising is the go-to option for advertisers. As India’s internet and mobile penetration grows, it has become one of the most effective tools for communicating with existing and potential users. Advertising has always been about getting attention, but the past year has shown the true power of mobile targeted advertising.
The boom in advertising technology has become a game changer for advertisers, especially seeing greater adoption in app verticals such as gaming, e-commerce, lifestyle, utilities, social, education, and entertainment. 2020 was a year of tremendous growth for us, we were able to triple our revenues as the COVID-19 pandemic accelerated the digital transformation and advertisers were willing to spend more bucks on digital advertising, including mobile ads; and looking ahead at 2021, I can only predict a bull run for the mobile advertising industry.
So, what makes mobile advertising so powerful? What’s the driving force behind its widespread adoption? Let’s take a look at the key factors that have made mobile advertising the crucial part for brands to garner effective user acquisition and direct app traffic.
Growth in Mobile Internet Users According to KPMG’s 2020 Media and Entertainment Report, there are over 450 million smartphones in India and over 600 Million active mobile internet users. India also has one of the most affordable mobile data prices in the world at USD 0.09 per GB compared to USD 8.0 per GB in the U.S. and USD 1.39 in the U.K. In addition, the advent of 5G is further catalysing this growth. The largest opportunity for 5G lies in the mobile media and display advertising space which combined can potentially contribute USD 300 billion in revenue by 2028.
It is clear that India is going to be nothing short of Disneyland for advertisers. In fact, we’ve already overtaken the US and become number two in terms of the sheer number of cell phones. This massive reach coupled with technological advancement and greater ROI is making advertisers lean heavily towards mobile advertising.
AI-Driven Technology
Today, even the country’s biggest eCommerce and news aggregator apps are leveraging mobile advertising for growth. Data analytics and digital advertising have always required highly-skilled professionals. Now things have become simpler thanks to AI-driven platforms like Globale Media. Technology has made it possible to understand user’s journey and interactions across devices, gaining a better picture on how they interact with ads.
Targeting users is no longer as laborious a task as it used to be. Advanced AI-based algorithms and app recommendation engines are helping advertisers target the right segment of users in a manner that drives the best ROI for them.
The second part of this is tracking campaigns. This has always been a key concern for marketers and advertisers alike. But thanks to data analytics and attribution tools like Google Analytics, Google Double Click, Tableau, Branch, AppsFlyer, Clevertap etc things are far more organized and accessible on this front to help advertisers reach their goals better.
Low Cost & Great ROI
Gone are the days when impressions and views alone could convince a brand to advertise on a platform. Today, advertisers are focused on cost-based models such as Cost Per Click (CPC), Cost Per Acquisition (CPA), Cost Per Install (CPI), and even Cost Per Transaction (CPT). Digital marketing today is all about getting the best results - this is one area that mobile advertising platforms deliver better than anyone. Pure positive ROI created from marketing innovations.
The dominance of ‘mobile first’ is even more relevant and powerful due to their category-wide application. Advertisers across verticals like gaming, e-commerce, lifestyle, utilities, social, education, and entertainment can use the technology of focussed platforms like ours to get the best possible ROI over multiple channels. The fact that we’ve become one of the fastest-growing start-ups by top-line revenues and achieved almost 3X revenue growth YoY is a testament to the adoption of mobile advertising.
India is a country with the fastest-growing internet user base in the world and it is to increase rapidly in the next few years. We’re steadily moving towards a mobile-first economy, and advertisers are taking notice in actively choosing and spending more on mobile advertising over other mediums. What started as a tiny portion of a company’s advertising budget is now the bulk of it. Not to mention, that 2020 has certainly accelerated this behaviour across industries.
Today brands are putting over 51% of their marketing budget towards mobile ads and the share is likely to increase to 65-70% by 2022. Globally, mobile advertising spending amounted to 189 billion US dollars in 2019 and this figure is estimated to surpass 240 billion US dollars by 2022. It’s no longer about catching your audience in the middle of their favourite TV show, you can talk to them while they are on YouTube or be on the top of their mind with search ads on the Google Display Network. In fact, things have now gone well beyond Google & Facebook.
When it comes to measurability, transparency and impact, mobile advertising is the future of digital marketing. It simplifies everything from campaign targeting to goal setting, testing creatives and performance. With the digital revolution in India going onwards and upwards, advertisers are recognizing they can grow better across devices by exploring mobile advertising.
The author is Bhavesh Talreja, Founder and CEO of Globale Media
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