For the first time, the mobile app spending will outpace mobile web browser ad dollars nearly 3-to-1. Advertisers will spend $20.79 billion to reach consumers via mobile apps in 2015, compared with $7.93 billion on mobile browsers, according to eMarketer Digital Advertising report.
Increase in the In-app spending is only a part of the Mobile advertising opportunity where the total mobile advertising spend is likely to increase to 72 percent of Total Digital Advertising spend in 2019.
The total mobile advertising dollar spend is projected to grow at a faster rate than the desktop spend with nearly 70 percent of Total advertising spend contribution on Digital media coming from Mobile Devices in 2018. The increase in Mobile ad spend is from rich media and video formats and Mobile Display Ad Formats are likely to perform better than search.
Mobile App Install Ads that have grown at 115 percent in 2014 are estimated to grow at 80 percent in 2015, making up for 10 percent of all mobile ad spending.
Advertising opportunities on Social by way of Promoted Tweets and Facebook News Feed ads as well as short-form video are some of the compelling advertising opportunities that have increased the Mobile advertising spend. For mobile advertisers ad options such as Geo-location based targeting and interactive formats will help advertisers get a bigger slice of cake.
Key Takeaways For Publishers and Advertisers
- Targeting according to behavior – Behavior based targeting becomes important with the rise of engagement with apps and formats that are most engaging for a certain category are likely to be prioritized for optimization.
- The total time spent on Mobile devices is higher than the time spent on Desktop with Mobile Apps contributing to the highest share of Mobile time. Thus for any publisher or advertiser native advertising within apps most engaged with for category are likely to bring better return on the ad dollar.
- Increase in time spent in-apps is growing at a higher rate than the mobile web, the campaigns
- Share of time spent is highest for the Top 4 Apps and publishers and advertisers need to plan their media buy accordingly.
- Retail Apps are a targeted advertising platform with in-apps advertising provides a better contextual framework for advertisers for engaging the mobile shopper with 49 percent of time spent on Retail Apps. The other content categories such as Radio, News, Photos, Maps, Games, Weather and Social Networking apps are the most engaged categories for mobile apps. To create engaging experiences in Retail apps, advertisers are likely to be creative by leveraging video streaming phenomenon.
- Given the dynamics of campaigns on different devices across content categories, real-time optimization of digital media plan delivery increases targeting accuracy, viewability and ROI of campaigns
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