Digital AD Is Increasingly Gaining Marketers’ Attention Mobile To Fuel Its Growth

Digital AD

Businesses that confine themselves in small social shells hardly enthrall their prospects with innovative products and services. Because people don’t like reserve and introvert brands, they respond to brands that communicate with them again and again. Marketers who are aware of this rationale make every possible effort to make their presence felt in the biosphere of their target audience. And, the smartest among are those who chose the communication medium as per the choice of their prospects. Today, even a naïve marketer is familiar with the fact that none of the conventional advertising format is as diffusive, disruptive, and decisive as the Digital Advertising. Indians are smart to emulate technological revolutions, and in Digital Advertising too, they are among the forerunners. Being the centre of mass in BRICS nations, India has to create successful examples in the field of trade and commerce, and no doubt, advertising is the most powerful catalyst for business growth.

It is not only the Internet or Social Media that is fuelling the growth of Digital Advertising; there are multitudes of transformers that are empowering the vertical. Though content has been always the prime force of advertising, after the advent of digital media, it has become the soul of advertising. Beyond jingles and copies, content plays a versatile role in social media channels, networking sites, blogs and mobile apps. Furthermore, the induction of programmatic advertising and digital wearable’s, developments in the world of advertising are quite unprecedented and thriving in the last couple of years. But, the most commendable factor in the growth of digital advertising is none other than the rising interaction between the marketer and its audience. Now, a brand can more easily anticipates the needs and wants of the potential customers and they too are quick to share their feedback on Facebook, Twitter, WhatsApp, Google Plus and thousands of other digital channels.

Digital ad market may touch 2 billion by December 2018

Riding on growing demand for smartphones and falling data prices, digital advertising spend in the country is likely to rise to Rs 13,000 crore ($2 billion) by December 2018 at annual growth rate of 35 percent, a survey said. According to the ASSOCHAM-KPMG joint study, the digital ad spending is expected to witness an exponential increase from the current level of Rs 9,800 crore due to widespread availability of 3G/4G services and the on-going surge in internet penetration in the country. “The digital advertising spend was estimated to be around Rs 7,500 crore at the end of 2016,” the survey noted. “Around 50 percent of their overall advertising spend was on digital followed by e-commerce, telecom, technology, banking and financial services and insurance companies,” it added.

The survey highlighted that the digital advertisement industry is growing rapidly as there is a growth in digital communication devices around the world, and the increase in smartphones, tablets is enabling advertisers to reach a wider audience. “The digital advertisements are flexible and can be adapted for any kind of device like television, laptop, tablet or smartphone,” the report said. The two-way interactive capability and the ability to customize the ad for target audience also made digital advertisements more effective, it added.

Mobile ads will make up 62% of digital ad spends

Although television still remains the biggest advertising platform in India, growing demand for smartphones, cheap 4G handsets and falling data prices are expected to increase mobile ad spending significantly, according to marketing research firm e-Marketer. Mobile advertising is becoming popular among advertisers and is expected to grow 85% in 2017, the firm said in its latest media ad spending forecast. Rise in mobile advertising will also help boost overall digital marketing spending to around $1.21 billion this year.

By the end of 2017, smartphones will make up 36.6% of all mobile phones, and by 2021 this share is expected to touch 47.4%, e-Marketer estimated. Additionally, the research firm predicted double-digit growth for mobile ad spending in the next few years in India. By 2021, mobile will account for more than half (~62.0%) of overall digital ad spending, which is expected to hit a total of $2.8 billion.

Globally, mobile ad spending touched $36.6 billion in 2016, accounting for 51% of overall digital advertising spending, according to IAB’s Internet Advertising Revenue Report. Video ad spending grew 53% to $9.1 billion, social media spending grew by more than 50% to $16.3 billion and search engines by 19% to about $35 billion in 2016, the report added. “While television continues to be the most popular advertising medium (in India), digital is the fastest growing, with ad spending recording double-digit growth rates up to 2021,” Shelleen Shum, senior forecasting analyst at e-Marketer, said in a statement.

“Driven by increasing mobile internet penetration, falling data prices and the availability of low-cost handsets, mobile will be a major contributor to the growth of digital advertising in the years to come as marketers embrace this channel to reach a new generation of young and digitally savvy consumers,” Shum added. This does not mean that advertisers and ad marketers would completely disregard Television advertising. e-Marketer pointed out that apart from cheaper smartphones, strong social media usage has led advertisers to increase their ad budgets on mobile along with traditional media spending. In 2017 alone, social media platforms are expected to reach more than a quarter of all mobile phone users and three-quarters of social network users, e-Marketer added.

Roadblock

Advertising fraud has been a serious issue in the digital realm for some time. With so much mobile marketing going toward luring new users to download and open an app, there’s a lot of incentive for advertising networks to game the system. Since agencies and their networks get paid per install, they often fake it and pretend that a real human downloaded and installed an app, when it was often just a bot.

India has the highest rate of such fraud in the Asia-Pacific region, at 17 percent, well ahead of No. 2, South Korea, at 12 percent, according to marketing consultancy Tune. Then there’s non-install fraud, such as fake clicks, dummy users or ads delivered to non-targeted audiences. The fraud click rate in India is almost 32 percent, Tune estimates.

Assuming a developer, which has spent millions of dollars on marketing, actually manages to entice a user to download and open its app, then it also faces a high uninstall rate. Mobile commerce is hot right now in India, which means there’s a lot of money being spent trying to get consumers to download an app from which transactions are made. But a large proportion of low-end devices with limited memory or processing power means many users delete the app to save space, according to Himanshu Kulkarni, India sales director at analytics provider AppsFlyer. This high churn rate then forces app providers to keep spending just to get those consumers to come back and reinstall, Kulkarni told e-Marketer. Not only does this result in a kind of double-spend, but it also interrupts the analytics that are so valuable to agencies and their clients.

None of this is to say that India’s ad market doesn’t have a bright future, but rain clouds are never far away from ruining the party.

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