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Indian mobile ad spend won’t reach $1 billion till 2018: eMarketer report

06-April-2015
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Indian mobile ad spend won’t reach $1 billion till 2018: eMarketer report

A new research by eMarketer has pegged the global mobile advertising market to surpass $100 billion in spends and account for 50 per cent of the total digital ad spends in 2016, for the first time ever. The total expenditure on mobile, forecasts eMarketer, will be $101.37 billion. This represents a jump of 430 per cent from 2013.

“Between 2016 and 2019, the last year in our forecast period, mobile ad spending will nearly double, hitting $195.55 billion to account for 70.1% of digital ad spend as well as over one-quarter of total media ad spending globally,” said the research firm in a statement.

However, despite this explosive growth, the outlook for India still remains bleak with eMarketer stating, “Despite India’s massive mobile audience, the market will continue to lag in mobile ad spending, failing to eclipse $1 billion by 2018.”

The growth in mobile ad spending is being driven by adoption of mobile devices, with an estimated 2 billion smartphone users worldwide next year; over one-quarter of whom will live in China alone, according to eMarketer.

“Especially there and in other emerging and developing markets, many consumers are accessing the internet mobile-first and mobile-only, so leading advertisers allocate their digital expenditure to mobile accordingly. The proliferation of these mobile devices (smartphones and tablets) across the world is driving the shift in advertising from the desktop to reach these untethered, always-on consumers,” said the research firm.

In the short term, the leading global markets, particularly the US and China, will drive mobile ad spending growth. In 2016, US advertisers will spend $40.24 billion to reach consumers on tablets and mobile phones, more than doubling the total from 2014, while those in China will invest $22.14 billion—nearly triple the amount they spent in 2014. Both of these countries will see mobile become a majority of digital ad spending next year.

The other three markets in the top 5, according to the research, will be UK, Japan and Germany, which are also expected to see significant increases in mobile ad spending next year. Significantly, eMarketer predicts that in all three markets, a majority of digital ad spending will be on mobile devices in 2017 for the first time.

Next year, Canada and Australia are also expected to surpass South Korea to become the sixth and seventh largest mobile ad markets globally, respectively.
 

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