The mobile advertising ecosystem is expected to be worth in excess of Rs 700 crore in 2015; a jump of just over 60 per cent as compared to 2014. However, this increase is just a prelude for a much larger shift in how companies are approaching mobile ad spends, which will start becoming apparent in 2016 and 2017, say industry experts.
In 2016, opined many mobile professionals, mobile ad spends would double over existing amounts and this trend would likely continue for the next couple of years. Considering that the expected ad spends in 2015 are to the tune of Rs 720 crore, this would mean that the Indian mobile advertising ecosystem could well be worth in excess of Rs 1400 crore by 2016.
“Commerce, pay and content are the most important things on mobile. The moment brands start integrating these, the whole ecosystem will take off. The biggest shift will happen in 2017 because the economy is now stabilizing and brands are starting to relook at their marketing spends. In 2017 we will see a significant shift in mobile advertising,” opines Charulata Ravi Kumar, CEO of Razorfish India.
This change, she says will started to be noticed in 2016 as brands start looking at taking a mobile first approach. “We expect to see around 50 per cent of all digital spends on mobile by 2017,” she said. Currently, mobile ad spends are around 8 per cent of total ad spends and about
Dippak Khurana, Co-founder and CEO of Vserv also agreed that 2016 would be a “tipping point” for mobile advertising. “In 2015, a disruptive trend that emerged and will continue to grow in 2016 is the advent of Buy Button within ads. By providing secure ‘Buy Now’ buttons on display ads, ads have changed from just delivering a promotional message. The algorithm and methodology behind the ad is still the same, but by eliminating the several steps between impressions and purchase is now turning out to be a seamless single action,” he said.
Other reasons fostering this rapid growth are the growing penetration of smartphones with India now the biggest smartphone market and the coming of 4G by the year end. Advertisers are also becoming more open about experimenting with new ad formats instead of sticking to standard display ad units. For example, most industry professionals we spoke with agreed that native advertising would be one of the most important ad formats in the future.
“Native advertising on mobile will undergo a lot of customization as marketers will closely emulate and leverage the characteristics of the mobile environment i.e. an app or a site wherein the content is featured. We will see native mobile ads being more mainstream as these ads, with the right content and context, will be designed to merge seamlessly with the app to not interrupt the user experience,” said Tripti Lochan, CEO of VML Qais.
Mobile ad spends to increase by 60% in 2015