Mobile ad spending is on a tear. It will top $100 billion in 2016 and account for more than 50 percent of all digital ads for the first time, according to market researcher eMarketer.
More than $101.37 billion will be spent on ads served in 2016 to mobile phones and tablets worldwide. That’s a 400 percent increase from 2013. From 2016 to 2019, mobile ads will nearly double again, rising to $195.55 billion. That figure will account for 70.1 percent of all digital advertising as well as more than one-quarter of total media ad spending worldwide.
It’s all about the number of consumers adopting mobile devices. As that number soars, marketers are chasing consumers into mobile markets. Next year, eMarketer estimates, there will be more than 2 billion smartphone users worldwide, more than one-quarter of whom will be in China.
The number of tablet users worldwide is growing more slowly than the global smartphone audience. But tablets will reach more than 1 billion users in 2015. eMarketer said that in many emerging and developing markets, consumers are often accessing the Internet mobile-first and mobile-only, driving marketers to mobile advertising.
The U.S. and China will drive mobile ads in the short term. In 2016, U.S. advertisers are expected to spend $40.2 billion on mobile ads, more than doubling the total from 2014. In China, advertisers will spend $22.1 billion next year, triple the amount spent in 2014. In both countries, mobile will become the majority of all digital advertising next year.
Over the last few years, “mobile-first” has become the mantra among savvy digital marketers. But a mobile-first approach seems to be more of an ideology than it is a standard in digital design. Recent research shows that marketers still invest in mobile as an afterthought or as a bolt-on to more mainstream digital programs. For some reason, executives still need more convincing to properly fund and support mobile initiatives that span the entire customer journey, not just pieces of it.
While mobile is often referred to as the second screen, the reality is that smartphones are really the first screen among connected consumers. They are always within reach. They are the first place consumers go to communicate, research and share. As of last year, mobile platforms accounted for 60% of total time spent on digital media, according to ComScore.
The truth is that “mobile-first” should be the standard for all things digital. According to a recent study conducted by Nielsen, roughly half of consumers believe mobile is the “most important resource” in their purchase decision-making. And more than a third said they used mobile exclusively. At this point, mobile-first may not be enough. To be successful, brands and agencies must think beyond mobile campaigns and start to think about mobile-only as a complete foundation for the next generation customer journey.
Right now, mobile tends to exist without an owner to take accountability in the customer experience. As a result, mobile strategies for the most part are focused on an isolated aspect of customer engagement, whether it’s marketing, commerce, loyalty, etc., and very specific instances within each. This is because all of these solitary programs are owned by different stakeholder groups that are strewn across the organization and not necessarily in tune or in alignment with one another. It’s not uncommon for these departments to not collaborate with one another, and thus, the mobile experience is discombobulated by design and impossible to deliver an integrated customer journey.
This is a problem and it needs someone to solve it now.
International Data Corporation (IDC) revealed the top 10 predictions that IDC believes will have the biggest impact on the telecommunications industry in Malaysia this year. Service providers are expected to redefine its strategies, transform its organizations, launch new solutions and technologies to retain its growth and stay relevant in market.
“2015 will be a critical year for telecom service providers. The telecom market is undergoing a major revolution driven by the changes of user requirements, revenue drivers and new technologies. Service providers with the right strategy will begin to see returns of their transformation investment while traditional providers will continue to struggle,” says Alfie Amir, Research Manager, Telecoms, IDC Malaysia.
The top 10 predictions are:
- Total Telecom Spending Will Experience Slower YoY Growth From 5.5% To 2.8The total spending on telecom services is expected to continue to grow but at slower rate, with only 2.8% YoY increase from RM34.3 billion in 2014 to RM35.3 billion in 2015. This is due to the slow growth in mobile services market, which accounts to 74% the total telecom revenue in 2014.
- Business Segment Will Continue To Dominate Fixed Line Market Accounting To 59% Of The Total RevenueBusiness segment has been the key driver for fixed line services. 60% of the total fixed line revenue in 2015 is expected to be from this segment. The 3rd platform adoption will drive higher requirements from enterprise users to their telecom providers, and hence creating new opportunities for telecom providers to expand their services beyond connectivity.
- Fixed Line Service Providers Will Expand Their Services To ICT Solutions And Triple The Addressable Market Fixed line providers are expected to expand their existing services to ICT solutions, addressing the changes in market requirements. This will triple their total addressable enterprise market in 2015 to around RM16.4 billion. The focus is expected to be on ICT solutions integrated with connectivity services, such as unified communications, cloud and network management services.
- Fixed Line Service Providers Will Customize Their ICT Solutions Focusing On High Potential VerticalsAs fixed line providers are expanding their products and solutions to ICT, addressing the market requirements for different vertical industries become more challenging. In 2015, fixed line providers are expected to customize their solutions based on different vertical requirements, and focus on high potential verticals such as banking and government.
- Managed Services Trend Will Begin To Rise In Telecom MarketEnterprises in Malaysia are beginning to look for more efficient delivery model for their ICT solutions, as part of their cost saving initiatives. Managed services market in Malaysia is expected to grow strongly by 9.3% to RM6.4 billion in 2015. Telecom players are expected to explore this opportunity with their large connectivity customer base.
- Mobile Voice Revenue Will Start To Decline For The First Time EverAfter a very slow growth of only 2% in 2014, mobile voice revenue is expected to finally decline for the first time ever in 2015. This is driven by over-the-top players (OTTP) and LTE adoption, as LTE provides comparable VoIP experience compared to the traditional voice service.
Wall Street Journal
Recent reports have suggested the Web is dying. That’s largely because data from analytics firms including comScore and Flurry say mobile device users now spend more than 85% of their time in apps instead of Web browsers.
But according to the Interactive Advertising Bureau, a trade group for Web publishers, the relationship between mobile apps and the mobile Web isn’t that straightforward. It’s easy to look at comScore data and to reach the assumption the mobile Web is in decline, but what looks like app time may actually be mobile Web use in disguise, the online ad trade body said.
Many apps, including news aggregation and social media apps, include browser capabilities within them. If a user opens the Facebook FB -2.46% application and taps on a link, for example, they are technically operating within an application, but are actually consuming content from the mobile Web, too.
To understand users’ mobile Web habits better, the IAB commissioned Harris Poll to survey 2,030 adults in the U.S. in December, and found 52% of smartphone owners in that group said they click links within apps that take them to content on mobile websites. The research also found users actually value apps in part because they enable the discovery of webpages.
The IAB said it believes this type of mobile Web browsing inside non-browser applications represents a significant volume of traffic. In other words, mobile app use isn’t replacing mobile Web usage, it’s driving it.
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