eMarketer made predictions regarding mobile ads reaching top $100 billion for the first time in 2016. This prediction came true when mobile ads occupied 51% of the total digital ad market. As return, 65% of marketing leaders now aim to up their investments on digital advertising. However, digital marketing is characterized by rapid developments and innovation. Growth in mobile advertising in the past year can be attributed to four significant trends:
Last year, consumer mobile video creation and viewership reached their peaks through various media platforms, including Snapchat, Facebook, and Instagram. As more consumers desired for viewing vides through their mobile devices, advertises took the opportunity and use it their advantage.
In return, a 200% growth was observed in video ad consumption, whereas mobile ad expenditure showed a staggering 150% increase. Marketers found a very powerful tool in video ads, which they used to attract consumers who are more prone to viewing video ads than static ads. Notably, video adds result in higher rate of conversions than static ads.
Solidified mobile video then became the fastest growing ad format in 2016. This served as an eye-opener for advertisers, who realized that they must be aware of consumer habits in order to upgrade their ad practices.
RETARGETING RETAINED CUSTOMERS
Getting the customers to download apps is not indicator of success. Research has shown that an average app loses 77% of its users only a few days after installation. App marketers tried to remedy this problem by retargeting their customers to catch their further interest.
In return, user retention became more important than attracting new users. Advertisers then decided to shift from cost per install to cost per action to address their focus on retention. Though there were improvements, these were most notable in ride sharing apps and gaming apps.
THE ADVENT OF PROGRAMMATIC ADVERTISING
Though previously considered the “gluten of advertising,” most advertisers now utilize programmatic buying for marketplace transactions and for targeting customers. In fact, North American advertisers took the largest share in mobile programmatic advertising spend.
in 2016, mobile programmatic spend was expected to reach $15.45 billion, it also expected to surpass that for desktop in 2017.
US occupies the largest portion of the mobile market industry, but Asia experienced a significant boom that surprised Western brand. It is expected that 84% of digital ad spend in China will be in mobile format, and again, this will prove to be a great opportunity for marketers. However, US marketers will face significant hardships in penetrating the Chinese market. The only way that they can achieve such goals is by a finding a partner who can understand the significance of introducing Western advertising in the Chinese market.
This surprising trend in Asia is expected to continue in the coming years, Indonesia will be taking the lead on this progress. Moreover, smartphone penetration in the country is expected to reach 47%, whereas smartphones will be offered at new lowered prices. Smartphone users will also experience significant improvement in 4G coverage. Given these advances, Indonesia will possibly become the next largest e-commerce market in Asia. Still, other countries, such as Singapore and Malaysia, are also expected to follow suit and thus should not be neglected.