The global mobile advertising market is set to grow from 2023 to 2027 by $290.16 billion, an estimated growth at a CAGR of almost 12.54 percent. The Mobile Advertising Market –Forecast and Analysis 2023 – 2027 report by Technavio stated that the growth depends on factors like in-app advertising, introduction of video advertisements, and emerging trends of social media.
It found that social media plays a crucial role in driving the global mobile advertising market. Mobile ads rely heavily on various social platforms. The report said users share brand posts, and this boosts awareness. Platforms like Instagram record increased shopping through mobile ads, encouraging instant purchases in posts and stories. Technavio, in the report, outlined that Facebook adopts strategies like efficient mobile video ads and auto-play videos, capturing advertisers’ and consumers’ attention. YouTube uses TrueView in-stream video ads, allowing advertisers to integrate their content seamlessly.
Key Trends
One of the major trends is the utilization of VR videos. This has gained popularity as an effective advertising tool. It provides users with immersive experiences through software-generated realistic images. The report says this VR technology extends beyond advertising and gaming. It finds applications in promoting movies and TV series, such as the use of Oculus Rift VR headsets and Unity game engine to create immersive experiences – exploring the world of Game of Thrones.
Challenges
The absence of relevant mobile advertisements makes it challenging, causing user annoyance when ads on their devices and apps fail to meet expectations. Technavio says ad formats like pop-ups, auto-playing videos with sound, interstitial ads, and mobile prestitial ads disrupt the user experience and are generally disliked. Delivering appropriate content remains a hurdle in digital advertising. Moreover, mobile ads often lack specificity and relevance to the target audience. The report highlighted that this shift towards personalized communication preferences is anticipated to impede the growth of the global mobile advertising market.
Overall, search ads are the most popular mode of mobile advertising. These ads have higher conversion rates than other ads and are more relevant because they are displayed based on the information collected from the frequently search keywords. Prominent search engine providers, including Alphabet and Verizon, are focusing on enhancing their mobile search ads based on advertiser feedback. As such, Alphabet, Facebook, and Microsoft continue to optimize their technologies to enable efficient digital marketing.
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