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May 26, 2016

Total amount to be spent in Mobile Ad is getting higher each year

Mobile phones are getting vastly used by many. Almost all people have been using smartphones, tablets, iPads and any devices that can be easily carried. Most of them used this to send text messages or even do their transactions such as bank transactions and online purchase. This is one of the reasons why marketers have innovated a way to advertise in mobile since it is used by most consumers. It is called mobile advertising.

By its definition, mobile advertising is one of the methods in advertising that appears on mobile devices. These ads can be in the form of text message or SMS, banner advertisements from a mobile-friendly website or even from the downloaded applications and games. In other words, mobile advertising is just a communication of products and services from the seller to the consumers through the use of mobile devices.

From the past two years, it has been observed that the total expenditure for mobile advertising is extremely escalating. A table from eMarketer in 2015 in US mobile ad spending will be shown to prove the increasing trend of the expected total amount to be spent in mobile advertising on the upcoming years. It can be seen that in the year 2014, 19.15 U.S. billion dollars was the only amount spent for mobile advertising. However in 2015 it increases by 11.3 U.S. billion dollars. If one will think about it, it is such a great increase. Its percentage of total media ad spending has grown from 10.9% to 16.6% and in terms of the percentage of digital ad spending it grows from 38.5% to 52.4% which means that more than half of the total expenditure in digital ad came from mobile advertising. It is incredibly fascinating! It is predicted that by the end of this year there will be 42.01 U.S. billion dollars that are spent only in mobile advertising. According to the table, up until 2019 the trend is constantly increasing. An estimated amount of 50.84, 57.95 and 65.49 U.S. billion dollars are to be spent in the years 2017, 2018 and 2019 respectively.

mobile ad 300x180 - Total amount to be spent in Mobile Ad is getting higher each year

Also, another thing to know about mobile advertising is that it surpasses print advertisements. “Consumers’ increasing on-demand consumption of media through mobile—coupled with improvements in targeting, attribution and ROI for mobile advertising—will continue to take away ad dollars from magazines and newspapers,” said Utreras. This is just a proof that many customers are engaging mobile phone in negotiating and doing their transactions using their mobile phones.

One of the reasons why mobile phones are usually used by many is that it comes in handy. People can even carry it anywhere they go. It is more convenient and easy to use.

Since entrepreneurs have known the benefits in investing in mobile advertisements, most of them are targeting their products to be advertised using this kind of advertising. That is why a businessman must remember that whenever he or she is creating a site, it must be mobile-friendly so that many consumers can easily access the site so that it will get more traffic and even attract a greater number of customers.

Sources:

Click to access eMarketer_Roundup_Mobile_Advertising_Marketing_Trends.pdf

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