In Business Insider's most recent analysis of the digital advertising market, it proclaims that in the next few years the growth in mobile advertising will exceed the growth in all other digital advertising categories combined. As of today, mobile revenues only make up a small portion of the digital advertising revenue pie, as of 2013 the number was estimated at roughly 20%. However, this channel has become increasingly attractive to advertisers, and the growth is projected to be significant. BI's analysis projects that the compound annual growth rate will be 43% over the next five years. The end result of this is that mobile advertising will account for roughly 50% of all digital advertising revenues. While display and video advertising will experience the largest rate of growth, search and social media will continue to be the largest sources of mobile advertising revenue.
This growth speaks to the development and increased sophistication of mobile advertising. Advertisers realize that mobile advertising allows them to access consumers in real-time, and to in many cases deliver more relevant, localized and personally tailored advertising. This specification will likely drive an increase in customer engagement with the advertisements and improve the return on investment for brands. This platform however requires brands and advertisers to change their messaging and approach. Because the ads are generally being consumed in real-time, advertisers need to tailor those ads to specifically address the use case and action items wanted. As technology evolves, and geo-location services become more effective, I think that will only further increase the utility and value of mobile advertising, and we will see mobile overtake all other forms of digital advertising.
No comments:
Post a Comment