Mobile spend still below 50% of total digital ad spend for most marketers: MoMAGIC Report

In the survey conducted for the report, 53% respondents believe that mobile ads are more effective in reaching the right target audience

e4m by Dolly Mahayan
Published: Mar 27, 2019 8:34 AM  | 3 min read

Digital media company MoMAGIC has come out with a report, ‘Disrupting Mobile Ad Tech in India: Delivering User Experience’. The report gives insights on how the Mobile AdTech market will be looked at by marketers in future, and possible concerns & trends.

The report is based on the experiences of users, collected through a survey. The survey was conducted among the top 70 marketing & advertising decision makers across sectors in India over a period of three months. The research and data team of MoMAGIC, including one in Taiwan, also worked on the report.

Talking about the findings, Arun Gupta, CEO & Founder of MoMAGIC Technologies, says, “Mobile advertising in India is all set to take a quantum jump in the next two years with more and more Indians moving to consuming content, especially videos, on their mobile phones. With mobile data prices in India being the lowest in the world, advertisers and marketers have changed their strategy to get quantifiable results with deep user insight.” 

The report shows that for over 10% of the respondents’, ad spends on mobile has remained same.

It states that mobile advertising, as part of the digital ad spends, is still below 50% for 64% of the respondents. Only 23% of the respondents said that their mobile ad spend as part of the digital ad spend was more than 50%

The report, based on primary as well as secondary research, indicates a healthy trend on the growth of mobile as a medium for marketing and advertising. In the survey, over 84% respondents said that ad spend on mobile has increased exponentially in the last two years and is slated to grow even further in 2020. Though many organisations have adopted this new platform for marketing, there is still a lot of room for growth and innovation considering that the percentage of ad spends on mobile versus all other digital channels is still far less than 50%, states the report.

As the mobile ad ecosystem is gaining prominence, it is inevitable that the conversations will evolve from ad performance to user experience.

The survey reveals that 53% respondents believe that mobile ads are more effective in reaching the right target audience. Some respondents (36%) also believe that because of the interactive nature of mobile ads, the level of engagement his higher.

According to Gupta, ‘brand security’ is the most important factor for any marketer. “They need to take care when it (ad) should appear and reach the consumers. It must be on the right time and right place. One also needs to check if the brand is secure in that space.”

“Digital advertising is becoming the most critical component of the revenue plan of all brands and publishers alike. And whether they like it or not, mobile users will continue to face an onslaught of ads now and forever,” he adds.

According to the survey, effective user targeting and not knowing the pulse of users are the two biggest challenges that publishers and advertisers are facing these days.

Another core challenge that publishers are facing today globally is how to balance user experience and the digital ad revenue.

As one might guess, the audience of a LinkedIn would be different from the audience of a Facebook. Their behaviour would be different despite the fact that both these are mainstream social platforms. So, while one experience might work for 70% of the audience, it might not work for the rest 30%, the report points out.

To strike a balance between user experience and digital ad revenue, one must understand the relevant metrics to measure. According to MoMAGIC research, for Indian stakeholders, the campaign metrics that matter continue to be traditional ones such as conversation rate and click through rate.


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