Tag: mobile marketing india

Mobile marketing budgets to increase by 25 percent

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.

Mobile Marketing BudgetThere 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.

Mobile marketing is growing quickly in India

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.

mobile marketing growth - IndiaThat 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.