Mobile Ad Spending - Expected Future Trends Till 2020

The evolution of advertising has gone through the several memorable stages. Earlier, ads distributed through the billboard and radio back in 50s, then it converted into the TV ads in 70s and finally in late 90s technology lovers and marketing giants promoted ads through mobiles. However, the purpose of mobile ad spending is the same as it was in 50s through billboard that is to effectively connect services and products with the people who need these.

As more and more people are turning away from their PCs and laptops, and switching towards smartphones and tablets for their daily dose of online stuff, the market for mobile advertising continues to shift too. As per the researches, it has been stated that mobile ad spending is expected to cross the ratio of $100 billion worldwide by the end of the year 2016. As mobile is becoming a single medium to connect to the world in no time, marketing professionals are making every bit of it to generate profit.

Researches says that Mobile Ad Spending is expected to cross the ratio of $100 billion worldwide by the end of the year 2016.

Owing to the growing demands and usage of mobile phones, a huge growth has been noticed in the distribution of advertisements. To make this happen professionally, entrepreneurs and market giants implemented various effective ways to distribute ads. Among a wide variety of channels, they prefer to use the Search ads, Display ads and SMS ads market segments to make their advertisements more happening among the users.

Image credit: emarketer.com

Mobile ad spending is expected to grow worldwide and the countries that would make the most profit out of it are predicted to be US and China. Current mobile spending in the US only is likely to go up to or more than $40 billion by the end of 2016. The revenue on the mobile ad spending in China is likely to cross $27 billion in the same time frame. Analyst also expect the number of mobile users in China to correlate with the amount of ad spending expected in the country next years.

According to the US mobile spending survey “US is likely to reach or can even cross $40 billion by the end of 2016.”

Aforementioned facts only depicts the statistics of the mobile ad spending up to 2016. But, for your information, I genuinely want to make you aware of the growth and usage of mobile ad spending in India and all over the globe. According to the fresh stats and forecast, it has been discovered that mobile ad spending will reach up to $72 billion in the U.S. by 2021. But, by observing keenly, researchers made accurate stats regarding mobile ad spending based on the worldwide survey which is expected to reach up to 247.4 billion U.S dollars by the end of the year 2020. This all would happen due to the gap made between desktop and ad spending via mobiles.

As per the future predictions “Mobile Ad Spending would gain admiration worldwide and will reach up to 247.4 billion US dollars by the end of the year 2020.”

Here, I am going to discuss some of the actual worldwide mobile ad spending stats given from 2013 to 2018.

Image credit: emarketer.com

Do have a look to gain absolute knowledge:

• UK - The UK has the potential to become one among the countries that can add significantly to the growth of the ad spending on mobile worldwide. 
• Japan - The number of mobile users has increased worldwide, most especially in Japan. Due to this reason, the country is expected to contribute significantly to the growth of ad spending over mobile.
• Germany - Germany is the next country where the number of mobile users is increasing tremendously and thus it can also add well to the growth of ad spending expected over mobile in coming years. 
• Canada - Canada is the next country that will have significant mobile users by the end of next year. 
• Australia - Australia is expected to be the seventh country down the line in the list of mobile ad spending countries.
• Brazil - Brazil will take up the ninth position in the list with a huge contribution to the global mobile ad spending.
• India - As expected, India will soon become the leader in mobile ad spending and also going to rule the digital market with its tremendous reach.

When we compare the growth chart country-by-country the)US is expected to remain on the top, as the number of mobile users in the country is rising every single day. Studies estimate that spending on the mobile ad, particularly in the US, by the end of this year 2016 is expected to the one third of the worldwide total. This is also the highest in the world per capita. US advertisers, on average, are expected to spend $565 on paid media to reach to the customers in the country.

Image credit: statista.com

For more information you can go through the below stats given on the basis of mobile ad spending growth in US:

China, on the other hand, will spend only $37.01 per person, although country’s large population has helped the country to be the second- biggest nation in mobile ad spending. However, Norway is the country leading the chart after US to spend $538 per person. Australia has taken the next position after Norway and has gathered the third rank to spend $504 per person in mobile ad spending context.

By observing the given stats, you can easily come to know the growth ratio of mobile ad spending in China.

The growth in the mobile ad campaign is not a surprise as the number of users operating their mails over phones have increased significantly. To catch the most benefit out of it, a number of companies are creating their mobile ad campaign. The platform is equally beneficial to the advertisers and the users. For marketers, such campaigns generate huge profit and for a user, there is always ease of use. 

Advertisement on mobiles and smartphones acts as the key catalyst in the growth of mobile ad spending. The growth of the ad spending is expected to reach $101 billion by the next year as people are likely to choose their mobile first instead of operating their laptops to check a mail. However, the one big factor that lag the mobile ad spending is the use of features phones. There are certain area where features phones are used greatly. In such areas even if the consumption of smartphones is there, the per capita consumption remains low. India is a prime example of it. 

Even some markets lag behind, mobile ad spending in these areas is expected to grow steadily but surely. For such markets, TV is still the best advertisement medium for advertisers. However, as the number of smartphone users will increase, these markets will certainly register their presence in the world of mobile ad spending. In next some years, the profit with global mobile ad spending is expected to offer huge interest to the companies. This digital ad medium has the potential to lead the markets of ad campaign and bring the world a new experience.

As seen that consumers spending hours in a day on their smartphones, there is no surprise that mobile ad spending will cover the entire digital world. Moreover, mobile moves to become the most dominant channel as marketers and advertisers are devoted to spending ads in the form of rich media, video and social networking platforms.

Conclusion: 

Having the lion’s share of mobile ad spending, US is expected to contribute more than half of the total ad spending worldwide. With this growth, the country will continue to top the chart for some years.