There are 5.3 billion mobile subscribers around the world, meaning 77% of the world’s population uses a phone. The majority of those users — 3.8 billion or 73% of the group — live in emerging economies. Yet mobile advertising dollars spent around the world do not begin to compete with traditional platforms or Internet ads. As the Internet spreads throughout the developing world, it’s arriving on phones before traditional computers. Some 70% of Internet users in Egypt, 59% in India, 57% in South Africa, 50% in Ghana and 44% in Indonesia get online via mobile phones alone. This Jana infographic poses a question for advertisers — how will relevant content be delivered via mobile device?
There’s no denying the fact that mobile advertising will flourish in 2012 and the coming years, particularly in the APAC region. Asia is already the largest mobile ad region in terms of mobile advertising spend. In fact, industry analysts predict that Asia will be a US$7 billion mobile advertising market by 2015. Smartphone penetration in Asia is expected to surpass feature phones in 2012. With this trend, there will be more emphasis on efficient buying methods to fill available mobile advertising inventory. More and more people are using their mobile devices to access the web as smartphone proliferation reaches every corner of the world. Not only are people connected, but their attention is increasingly tied to their mobile screen.
Locally targeted ads are forecast to account for 65% share of total US mobile ad revenues in 2016,according to details from an April 2012 BIA/Kelsey Group blog post. Specifically, local will account for $5 billion of the projected $7.7 billion in mobile ad revenues. This represents a dramatic increase from the estimated $0.8 billion in locally-targeted mobile ad revenues in 2011, which equaled 45% share of the $1.7 billion total. This year, mobile ad revenues are predicted to be $2.7 billion, about evenly split
That’s up from less than 23 percent in 2011. In India, mobile Internet will represent 19 percent of this year’s service revenue. While the figures demonstrate the robust demand for mobile data across the Asia-Pacific, they still pale in comparison to the region’s more advanced markets like Japan (40 percent) and Hong Kong (44 percent). ABI Research Senior analyst Aapo Markkanen explains, “It’s in carriers’ interests to become part of the Internet value chain from early on. Strategic choices, such as those seen in Indonesia, can give operators a more integral role in defining the customer experience in a time when the local digital landscape is still being shaped up.
The number of US mobile phone users will increase at a compound annual rate of just 1.8% between 2010 and 2016, eMarketer estimates, moving from nearly 75% penetration to 79% by the end of the forecast period. The number of total mobile connections in the US, including subscriptions to mobile phones as well as nonvoice devices such as wireless modem cards, netbooks, mobile Wi-Fi hotspots, ereaders, tablets and telematics systems, jumped in 2011 by 11.6%.
Mobile Internet will account for 25% of China’s mobile revenues in 2012, up from less than 23% in 2011. In India, mobile Internet will represent 19% of this year’s service revenue. While the figures demonstrate the robust demand for mobile data across the Asia-Pacific, they still pale in comparison to the region’s more advanced markets like Japan (40%) and Hong Kong (44%). Senior analyst Aapo Markkanen explains, “It’s in carriers’ interests to become part of the Internet value chain from early on. Strategic choices, such as those seen in Indonesia, can give operators a more integral role in defining the customer experience in a time when the local digital landscape is still being shaped up. Moreover, such moves also allow them to gain valuable mindshare among local content providers and app developers.”
Ninety-two percent of consumers around the world say they trust earned media, such as word-of-mouth and recommendations from friends and family, above all other forms of advertising–an increase of 18 percent since 2007, according to a new study from Nielsen, a leading global provider of information and insights into what consumers watch and buy. Online consumer reviews are the second most trusted form of advertising with 70 percent of global consumers surveyed online indicating they trust this platform, an increase of 15 percent in four years.
Why do agencies hesitate to go after this low hanging fruit? Like aspiring swimmers and bicyclists, the simple answer is fear. Not of drowning or falling, but rather of being stymied by technology and saddled with additional expenses. Such fears are unfounded. Mobile technology, while advancing, is actually becoming simpler not only for Smartphone users, but also for agencies that see the value in crafting ad strategies and campaigns geared specifically for this burgeoning market.
As the smartphone and tablet marketplace continues to grow, so does the need to connect with people on their mobile device. Soon enough, mobile access will be the primary form of using the Web. Remember when landlines were the most prevalent form of communication? Now, most households forgo landlines for mobile phones as their main contact point. Mobile Web access is heading in a similar direction.