India mobile ad spend to grow by 85% in 2017, estimates e-marketer

The growth of mobile adex will help boost overall digital ad spend to Rs 8,000 crore, as per eMarketer’s latest media ad spend forecast

by Dolly Mahayan
Published - Oct 17, 2017 8:29 AM Updated: Oct 17, 2017 8:29 AM

According to research company eMarketer, global mobile internet advertising is expected to reach Rs 12.7 lakh crore by the year 2019, twice as much as it was in 2015, when mobile internet advertising revenue was only Rs 4.5 lakh crore.

According to a release by media measurement company Zenith, globally, mobile ad spending is expected to grow by Rs 1.7 lakh crore or 34 per cent, to Rs 7 lakh crore in 2017.

This year, mobile ad spending in India is expected to increase by 85 per cent, which will help boost overall digital ad spend to Rs 8,000 crore, as per eMarketer’s latest media ad spend by forecast report released in October.

eMarketer estimates that in 2017, smartphones will make up 36.6 per cent of all mobile phone users; come 2021, this share will rise to 47.4 per cent.

A major portion of this revenue, in fact, as much as 70 per cent, by some estimates, of digital revenue still lies with the duopoly of Facebook and Google.

"Mobile phones provide precisely targeted communication channels, where the propensity of a user being highly engaged with the content is very high. We leverage this while recruiting freelancers, part-time job seekers and contractual employees by targeting mobile apps which complement behavioural attributes and interest areas of this user segment. This delivers better campaign effectiveness and responsive rates compared to any other media," said Saurabh Mishra, Head, Digital Marketing at Kestone, when asked about how they are using mobile advertising.

The significant change has come in video advertising on mobile as video consumption has grown exponentially post low-cost data availability. According to most industry estimates; by a whooping 100 per cent. New video formats are being used with more engagement filters.

The fact that newer technologies like AI are also being rapidly assimilated in the mobile ecosystem is giving an impetus to more innovative ways of reaching the client.

According to Santosh Kumar, CEO of Mango Data, mobile provides more data points regarding audience behaviour which make targeting niche audience segments much better and more effective.

"Currently, in most campaigns we see that audience reach and engagement by mobile is almost 70-80 per cent, which means majority of digital advertising is being played on mobile," he further added.

"One major benefit smartphone offers is that it is chained to the consumer’s hand, essentially allowing an endless flow of information. Marketers have only started tapping this potential of mobile advertisements and are already portraying them as the stars of online advertising since video advertisements and textual advertisements are more readily viewable and the content is presented on a full-screen format leaving no room for distractions," said Vikas Katoch, CEO and Co-founder of Adomantra.

He further told us that there is no way to undermine the utility of digital advertisements. "The truth is that every marketer needs to maintain a co-existing balance between both mobile and digital advertising for different reasons," he said.

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