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Mobile Advertising Market to Remain Lucrative During 2022
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Display and Search Segment Key in the Mobile Advertising Market
The display and search segment account for virtually the entire revenue in the mobile advertising market and companies are advised to focus their attention on these advertising mediums. While both segments have an extraordinarily high CAGR, a growth rate of more than 20% is anticipated in the search segment of the mobile advertising market. Although North America has the largest regional contribution to the search segment in the mobile advertising market, APEJ should grow at a much faster rate and almost be equal to North America at the end of the forecast period.
Messaging a Niche Segment in the Mobile Advertising Market
Messaging accounts for a single-digit revenue share in the mobile advertising market and is nowhere close to either the display or search segment in value terms. Several studies have shown that customers do not read advertising messages and this explains why this segment is anticipated to lose BPS over the duration of the study. Nonetheless, an absolute dollar opportunity of over US$ 2.3 billion exists in messaging segment of the mobile advertising market from 2017 to 2022 and key stakeholders with customized go-to-market strategies may be able to profit.
The proliferation of social media, affordable smartphones, and rapidly improving 4G LTE network infrastructure in emerging economies have all directly benefited the mobile advertising market. Large technology giants such as Facebook and Google consider it to be the future of advertising and have invested big bucks to increase the overall visibility of the mobile advertising market. Millions of customers in developing countries are coming online for the first time on smartphones, driving the advertising shift from one that is desktop oriented to one that is mobile-centric or even mobile only. The mobile advertising market is anticipated to witness an exponential CAGR of 18.8% from 2017 to 2022.
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The messaging segment has a single digit revenue share in the mobile advertising market and is projected to lose market share over the course of the forecast period. Customers typically do not read advertisements if they are delivered in message format and that is why this segment has a comparatively lower CAGR in the mobile advertising market. Companies looking at entering the messaging segment in the mobile advertising market are recommended to look at either North America or APEJ as both these regions are anticipated to surge past US$ 1.5 billion by end 2022
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