Grow with the growing mobile advtg economy. Here's how...

According to Avendus Capital, mobile advertising market will reach INR 2800 crore by 2016. exchange4media takes a look at what brands can do to exploit this burgeoning trend

e4m by Saloni Surti
Updated: Oct 4, 2013 8:11 AM  | 3 min read
Grow with the growing mobile advtg economy. Here's how...

While mobile was christened to be the device of the future ever since technological advancements kicked in, there were no definite results, especially in terms of RoI. However, a recent report by Avendus Capital confirmed that we are already headed in the direction of mobile rulership.

According to the report, there are almost 2.4 billion internet users in the world, of which 1.5 billion accesses the internet through their mobile devices either as a primary or a supplementary device. About 38 per cent of internet users in China and 70 per cent of users in Egypt use internet only on their mobile devices.

The mobile advertising economy
Mobile advertising has nearly doubled (95 per cent growth in first half of 2012) in the US over the last year and is expected to continue with the same momentum. M-tailing (purchase of products through mobile devices) has grown rapidly over the last two years to reach 11 per cent of total e-tailing in the US in 2012, and is projected to reach 24 per cent of overall e-tailing by 2016.

In most global markets, 10-15 per cent of over page views come from mobile. In India, this number is estimated to be nine per cent. Statcounter Global Stats indicate that mobile page views in India have increased by 50 per cent as compared to 2012.

The increasing amount of time spent on mobile surfing has managed to translate well in revenues. According to eMarketer, the mobile advertising market is expected to grow to USD 36.9 billion by 2016 from USD 8.4 billion in 2012. In India, the mobile advertising market is expected to grow up to INR 2800 crore by 2016. Mobile advertising revenues in India in 2012 were estimated around INR 180 crore in 2012, constituting around 6.6 per cent of the digital advertising market. With mobile traffic expected to grow to 28 per cent in 2015 and the inherent fast paced growth of digital advertising, mobile advertising is expected to see a phenomenal growth.

On the device front, smartphones are expected to grow at a CAGR of 20 per cent to reach 2.2 billion by 2015. Tablet sales are expected to grow at a CAGR of 33 per cent from 118 million units in 2012 to 369 million units by 2016 and Android is expected to overtake Windows to be the most used platform on computing devices by 2016, with 2.3 billion devices.

Key takeaways
As the industry gears up to be a part of the mobile entourage, exchange4media takes a look at a few things that brands should keep in mind...

Feature phones are NOT extinct: In spite of the dominant smartphone culture, feature phones continue to constitute a huge chunk of the mobile economy. In India, 90 per cent of the internet capable devices are feature phones. According to the report, 70 per cent of data users and 50 per cent of traffic comes from feature phones. Thus, marketers should go beyond apps and look at VAS and other related services to reach out to these audiences.

Keep in mind the slow internet penetration: While 3G is on a roll and 4G is expected to penetrate the market soon, the numbers are still not impressive. 3G users in India are expected to be between 22 and 25 million. While the number is expected to increase and the prices are mellowing down, brands need to create initiatives that cater all users alike.

Content and content: Amidst all the madness in terms of types of mobiles and different data plans, the only element that will attract the audience is the content. Compelling content, in sync with the technological needs can get brands to places.
Demographics of the mobile economy have managed to shift completely. While the numbers are very impressive and promising, brands need to keep in mind these few things as they can make or break their mobile initiative. 

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