Has mobile advertising reached saturation?



Mobile advertising

Earlier in this series, we saw that social media marketing is essential. It needs to be in the marketing mix for any company that plans to expand its reach. It’s important if a company wants to increase its brand awareness in the current environment.

Mobile advertising is also important. It’s a type of advertising that involves communicating promotions or advertising messages. The messages are sent to targeted customers or a specific audience. They’re sent through mobile phones or wireless networks.

Mobile advertising provides a unique opportunity to connect with consumers on a personal level. The ads reflect their on-the-go needs and quick decisions.

According to a report released by eMarketer, mobile advertising will account for most of the growth in the global ad market in the next four years—due to increased mobile usage. Mobile internet user penetration will be more than 90% in 2017—up from 74% in 2013.

More than $150 billion in global ad market growth is projected through 2018. From this amount, $118 billion will come through mobile—according to eMarketer’s new projections. As a result, mobile spending will become the dominant digital ad segment in all of the major markets.

As the above chart shows, Google (GOOG) (GOOGL) still be the dominant player in the mobile advertising market worldwide. It had nearly a 50% share in 2013. However, Facebook’s (FB) rapid growth will cause Google’s share to drop in 2014—according to eMarketer’s estimates.

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Facebook is trying to acquire a larger share in the global mobile ad industry. It more than tripled its share. Now, Facebook has 1.35 billion monthly active users. As of September, 703 million users were mobile daily users. As a result, Facebook’s mobile ad revenues are growing. You can read more about this in Why mobile platforms are an important revenue driver for Facebook.

Other than Facebook, Twitter (TWTR) is the only player that increased its share in the mobile ad market. Twitter increased its share due to the growth in its mobile monthly active user base. Pandora’s (P) mobile ad revenue declined. Its usage is falling due to high competition in the market.


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