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India's mobile internet ad spends to reach $36 mn in 2014: Report

28-September-2013
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India's mobile internet ad spends to reach $36 mn in 2014: Report

“As smartphones and tablets become ubiquitous, advertisers will be able to capitalise on this unprecedented opportunity to develop more meaningful experiences with consumers leveraging mobility and place, and they will increase worldwide mobile ad spending to an estimated $59.7 billion by 2017, a nearly four-fold increase compared with this year,” shared Kate Sirkin, Executive Vice President of Global Research for Starcom MediaVest Group.

According to eMarketer’s latest Global Media Intelligence Report, produced in collaboration with Starcom MediaVest Group, global ad spending will rise 2.8 per cent to more than half a trillion dollars in 2013, driven by continued adoption of digital devices and internet connectivity.

While total media ad spending will be up this year, the rate of increase will not be particularly strong. eMarketer estimates ad expenditures will rise 2.8 per cent worldwide to $517.10 billion, compared to last year’s 4.4 per cent spending increase.

Digital, however, is a bright spot, particularly mobile. eMarketer estimates spending on digital advertising will reach $117.60 billion this year, up 13.0 per cent, compared to 2012 levels, while mobile spending will hit nearly $15.82 billion, representing a whopping 79.7 per cent year-over-year increase.

Much of the spending growth stems from broader digital adoption on the part of consumers. The report, which covers six major regions – including Asia-Pacific, Western Europe, Central and Eastern Europe, the Middle East and Africa, North America, and Latin America – and 40 countries, paints a picture of continued device adoption globally.

Almost 2.5 billion of the world’s 4.3 billion mobile phone users this year will be in the Asia-Pacific region, a share that is expected to increase over time. eMarketer estimates that 2.43 billion people in Asia-Pacific will use a mobile phone at least monthly this year. That translates to 56.3 per cent of the world’s mobile phone users. More than 1 billion of these mobile users will be in China alone, and about half that number will reside in India. By 2017, eMarketer estimates, Asia-Pacific will have around 3 billion mobile phone users out of a total 5.1 billion across the globe.

Perhaps the most astounding figure demonstrating Asia-Pacific’s trajectory is its smartphone user growth. In 2009, Asia-Pacific had just 86.2 million smartphone users. This year, Asia-Pacific will have more than four times as many smartphone users – 738.2 million total – than the next largest region in that category, Western Europe, which will have 161.1 million by the end of the year, and North America, which will have 152.2 million.

Advertisers are lining up to reach these users, many of whom are part of a rising middle class across several emerging markets in the region. eMarketer estimates spending on mobile internet ads, including display and search, but excluding messaging-based formats, will reach $4.14 billion across the region this year, up from $2.69 billion in 2012.

That will represent 26.2 per cent of all mobile internet ad spending in the world, making Asia-Pacific second only to North America by this metric. The region is expected to lose share in the coming years, however, as mobile internet ad spending in Western Europe grows more quickly.

Overall, Asia-Pacific will account for 27.7 per cent of total media ad spending and 28.7 per cent of digital ad spending in the world, ranking it second for both types of ad expenditure. 

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