A few months ago we wrote about some top trends in the global ad spending market. But nothing is static, especially in the mobile world, and the ad spending market has evolved.
Back in May we forecast that the global mobile ad spending market was growing at a CAGR of 38.12% from 2014-2019. Our new research focuses on the US segmentation of the ad spending market, which was valued at $17.76 billion in 2014 and is expected to reach $63.62 billion by 2019, growing at a CAGR of 29.07%.
On top of the trends we highlighted in May, a few more have emerged as key factors that are expected to impact the market throughout the forecast period.
High Mobile Ad Spending by Major Industries
Major industries like retail, banking, financial services, and insurance are investing heavily in mobile ads. These industries have increased their shares in the total mobile ad spending market to increase the level of engagement with their target segments and achieve advertising objectives.
According to Technavio, our dependence on mobile devices has encouraged many advertisers to use mobile ads as a strategy to engage customers by sharing information, such as the launch of new products, services, and games, music streaming, and m-commerce.
“In 2014, smartphone penetration in the US was 71.45%, with a unit shipment of 142.53 million units. This number is expected to increase during the forecast period, supporting the growth of the mobile ad spending market,” says a lead Technavio analyst.
Mobile Ads as a Tool for Viral Marketing
Interactivity is one huge factor that has contributed to the growth of the mobile ad spending market in the US. Mobile apps let advertisers engage consumers and reach a broader customer base, and this lends itself quite nicely to viral marketing.
Since the idea behind viral campaigns is that they spread under their own steam, via social media, advertisers are looking to capitalize on viral marketing to create a buzz around products and services without having to make a huge investment.
“Mobile ads have high reachability, and growing connectivity across both urban and rural areas is encouraging organizations to opt for mobile ads, which is more cost-effective than traditional advertising,” says Technavio.
Want more? Check out Technavio’s new report on the mobile ad spending market in the US.
