Tag: mobile ads

Despite that fact, the share of the overall advertising market within the country remains quite small.

Online and mobile marketing in India is taking off at a rapid rate – regardless of the fact that it had a low point from which to start – and this is proving to be quite promising to those who are focused on advertising within the country.

This is also a promising development for companies that rely on online ad revenue for their existence.

According to the national trading head of digital media at the WPP media buying agency, GroupM, whose name is Praseed Prasad, who spoke of mobile marketing in the country, “Mobile advertising in India is the fastest growing among all verticals in the digital advertising space. This is primarily because consumers are spending more time on mobile Internet activities as compared to desktops, subsequently growth in desktop Internet is fast getting saturated.”

The Internet Mobile Association of India (IAMAI) recorded a 29 percent growth in the year that ended on March 31.

That said, as much as the advertising channel is looking highly promising and is growing at a considerable rate, it continues to represent only a small fraction of the total market. It has been estimated that it makes up only about 10 percent of the total ad spending. But its rise is on the way. From 2012 to 2013, there was more than a doubling in the spending on mobile ads.

The IAMAI associate vice president, Nilotpal Chakravarti, was quoted to say that “It is one of the fastest growing channels along with social media. Every brand is looking to have its presence on the mobile platform either through apps or through their mobile site.”

As the mobile marketing channel progresses along its growth in India, it continues to have a small base. Moreover, it is also falling behind the growth that is being experienced in internet and data consumption over smartphones and tablets in the country.

While this may be interpreted as a failing within the mobile marketing industry, to a certain degree, by some, others are viewing this as a tremendous opportunity. They feel that it is clear that the channel is set to skyrocket and they are making sure to stake their claims within the space before it becomes crowded.

The company’s quarterly results have revealed that it has yet to master this advertising channel.

Although Google has proudly held its position as central and key to online advertising as a whole, when it comes to mobile marketing, specifically, it is becoming increasingly clear that the search engine is having a hard time spanning the gap to the smaller screen.

Although consumers may be using their smartphones and tablets on an increasing basis, advertising to them is difficult.

Mobile marketing is not simply a matter of the same traditional digital advertising, only on a smaller screen. Formats that were used over desktops are providing an entirely different experience for smartphone and tablet users, and it’s not one that they like. The screen size restrictions and touch screens mean that old ads simply don’t carry over to the new devices. That said, Google has not yet been able to figure out exactly how to make its ad business shine as it has done for the desktop and laptop channel.

This has meant that Google is less capable of charging the same type of premiums for its mobile marketing ads.

While this has been suspected for some time now, the recent release of the company’s earnings has only underscored the struggles that the company is facing as a result of this problem. The cost per click (the amount that an advertiser pays every time an ad is clicked) fell by 6 percent in the quarter that closed in June, when compared to the same quarter in 2013. This has been blamed on the increasing shift toward mobile advertising.

The decline in the ad prices was only the latest in an overall two year trend in that direction for Google. That said, further analysis was not made possible based on the released data as Google does not provide a breakdown of ad revenue based on desktop versus mobile channels.

Google is not alone in its struggle to break through the mobile marketing challenge and come out shining. Nearly all of the major players have found that the transition to multichannel marketing that will appeal to various forms of device user has involved quite the bumpy road and that the various gadgets and screen sizes are presenting far different requirements than had been initially expected.