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Synergistic Impact Of Social Media And E-commerce On Mobile Advertising Growth Emerges as a Core Driver of the Mobile Advertising Market in 2025
Mobile Advertising
What Is the Expected CAGR for the Mobile Advertising Market Through 2025?
The expansion of the mobile advertisement market has been swift in the past few years. The market, which was valued at $277.73 billion in 2024, is projected to reach $320.95 billion in 2025, indicating a compound annual growth rate (CAGR) of 15.6%. Factors such as the surge in smartphone usage, growth of the mobile app ecosystem, data analytics and targeting, the impact of social media and changes in consumer behaviour are believed to have driven this growth during the historical period.
What's the Projected Size of the Global Mobile Advertising Market by 2029?
In the upcoming years, the mobile advertising market is anticipated to undergo a swift increase. It's projected to escalate to $563.97 billion in 2029, with a compound annual growth rate (CAGR) of 15.1%. The surge during the forecast period can be traced back to the integration of augmented reality (AR) and virtual reality (VR), artificial intelligence and machine learning, the emergence of in-app advertising, adherence to privacy regulations, and increased ad transparency, as well as cross-platform integration. The forecast period will also see significant trends such as the advent of 5g technology, improvements in mobile technologies, the rise of in-app advertising, the supremacy of video, and the expansion of programmatic advertising.
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Top Growth Drivers in the Mobile Advertising Industry: What's Accelerating the Market?
The anticipated growth of the mobile advertising market is largely attributed to the increased prevalence of social media and e-commerce platforms. These online spaces that enable social interaction and content sharing are pivotal in maximizing mobile advertising. By utilizing the popularity of smartphones, social media and e-commerce platforms are able to broaden their promotional strategies. Consequently, they can create engaging and targeted advertisements that integrate with users' online engagement, thereby enhancing brand recognition, customer interaction, and boosting online sales. For instance, data from the United States Census Bureau in November 2023 revealed that e-commerce sales during the third quarter of 2023 made up 15.6% of all sales. Additionally, according to the Netherlands-based software company Meltwater in February 2023, the UK had 35 million LinkedIn members and 28.75 million Instagram users during that period. Moreover, LinkedIn's potential ad reach in the UK had increased by 2.9% between 2022 and 2023. These statistics highlight the significant role social media and e-commerce play in pushing the mobile advertising market forward. Mobile Advertising Market Driver: The Pivot Towards Digital Advertising Influences Upward Trend In Mobile Advertising Sphere
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What Trends Will Shape the Mobile Advertising Market Through 2029 and Beyond?
Leading entities in the mobile advertising market are increasingly incorporating advanced technologies like AI-based marketing automation tools and aspects to assist brands in achieving more targeted ad objectives. These AI-powered marketing automation tools and aspects are structured to automate and improve diverse marketing tasks and procedures, by utilizing artificial intelligence and machine learning to better efficiency and effectiveness. For example, Alphabet Inc., a technology company based in the US, rolled out two new AI-based features for advertisers in June 2023. The first feature, named Demand Gen, is a mobile advertising instrument that employs AI to distribute an advertiser's photo and video ads across multiple products, including Gmail, the YouTube feed and Shorts. The second feature deploys AI to determine the optimal ad placements to maximize a brand's video ad views. These aspects will eliminate advertisers' need to ponder where to position their ads, instead concentrating on securing placements.
What Are the Main Segments in the Mobile Advertising Market?
The mobile advertising market covered in this report is segmented -
1) By Format Type: Search, Display, Digital Video, Other Format Types
2) By Category: Art And Entertainment, Hobbies And Interests, Other Categories
3) By Mobile Devices: Smartphones, Laptops And Notebooks, Other Mobile Devices
4) By Vertical: Retail And E-commerce, Media And Entertainment, Healthcare, Banking, Financial Services And Insurance (BFSI), Education, Travel And Tourism, Other Verticals
Subsegments:
1) By Search: Paid Search Ads, In-App Search Ads, Sponsored Search Results
2) By Display: Banner Ads, Rich Media Ads, Interstitial Ads, Native Display Ads
3) By Digital Video: Pre-Roll Video Ads, In-Stream Video Ads, Social Media Video Ads, Interactive Video Ads
4) By Other Format Types: Native Ads, Push Notifications, Location-Based Ads, Augmented Reality (AR) Ads, Interactive Ads
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Which Top Companies are Driving Growth in the Mobile Advertising Market?
Major companies operating in the mobile advertising market report are Amazon.com Inc., Apple Inc., Alphabet Inc., Meta Platforms Inc., IBM Corporation, Cognizant Technology Solutions Corporation, Adobe Systems Inc., X Corp., Applovin Corporation, Ubisoft Inc., Pandora Media Inc., MobVista International Technologies Ltd., Amobee Inc., Millennial Media Inc., Mintegral International Ltd., Avazu Inc., Inmobi Pte. Ltd., Affle India Ltd., Verve Group, Epom Ltd., Creative Clicks, Flurry Inc., Leanplum, Smaato Inc., Chartboost Inc., TUNE Inc., PageFair Ltd.
Which Regions Will Dominate the Mobile Advertising Market Through 2029?
North America was the largest region in the mobile advertising market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the mobile advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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