A recent India based study has shown that interest in advertising over this channel is growing fast.
Even though marketers in India typically reserve 10 percent or less of their total advertising budget for mobile marketing, a new report has indicated that this trend is currently changing and that by the end of the year, that figure will have risen by 25 percent.
Marketing firms in India tend to spend less of their overall ad budgets on mobile than Asian Pacific counterparts.
Almost 75 percent of marketers in India currently reserve 10 percent or less of their overall ad budgets for mobile marketing. In Asia Pacific countries, only 66 percent have such a low percentage reserved for this channel. This, according to a report that has been issued by Warc and the Mobile Marketing Association. That said, the report did take care to underscore the fact that much of the industry is expecting to increase their amount of spending on smartphone ads by 25 percent.
The portion of the mobile marketing budget will also continue to rise by another 51 to 99 percent by 2020.
There will also be overall advertising budget growth heading to India, this year. Therefore, even though there will still be companies that will be spending only 10 percent of their total budget on mobile ads, the amount of money actually being spent will be increasing. In fact, the total budgets in India are predicted to rise by an average of 46 percent, which is slightly higher than Asia Pacific company counterparts, where the prediction is a 43 percent increase.
To explain the growth in the amount of spending that will be dedicated to mobile advertising, the report indicated that the cost associated with smartphone ads has increased by 49 percent. Therefore, to maintain the same strategy, it is costing companies more. “While marketers appreciate the importance of the mobile channel in India, full potential of mobile advertising is still to be realized,” said the report.
Approximately 47 percent of the respondents to this survey stated that they felt that mobile marketing is an effective channel and that it provides brands with benefit.