These devices have become the platform of choice for advertisers looking to find specific audiences and boosting traffic and customer engagement.
The data-driven digital marketing trend is one of the most important developments in global marketing industry. This marks a shift from cold-calling and broadcast marketing techniques to mobile applications (apps). Companies of various sizes across all verticals have made sizable investments in digital marketing platforms, using them to manage business operations, curate well-formulated marketing approaches, and adapt to current consumer demands. These new practices have profound implications for brand and advertising activity.
Frost & Sullivan analysis estimates that global mobile advertising market reached over $300 billion in 2021. One of the key factors driving the market demand is the increasing number of mobile applications (apps) in app stores as a viable and high-performance mobile advertising channel that stimulates advertisers’ demand for effective monetization options. Mobile apps have become one of the fastest-growing areas in the mobile advertising industry because of the rapid development of mobile apps market and mobile gaming market.
Technology providers with access to their user base and resources are rapidly developing mobile advertising and mobile apps capabilities. For example, Amazon and Alibaba have established new business lines to meet the demand for mobile advertising and to display advertisements within their mobile app networks, enabling them to increase consumer traffic and monetize other aspects of their business by leveraging their technology base.
The mobile app advertising ecosystem is flourishing; technology innovations, business collaborations, merger and acquisition, and new marketing technology firms entering the market represent a growth opportunity for the industry. In addition, the development of next-generation Big Data technologies will help automate real-time bidding monetization through data analytics.
Another aspect that is directly influencing mobile app advertising demand is the rise of mobile developer market. Technology-driven solutions, such as displaying advertisements on mobile apps, are an effective ways for developers to generate revenue. Network advertisements, such as Meta Audience Network (e.g., Facebook), enable developers to monetize their mobile apps by displaying advertisements from Facebook advertisers.
There has also been significant traction in mobile gaming advertising. Mobile gaming apps capture highly engaged audiences that are willing to spend hours on their smartphones. Going forward, this consumer dynamic presents an opportunity for advertisers to create awareness and communicate with high-intent audiences in a unique and engaging environment.