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Technavio: mobile ad spending revenue to surge

Technavio (www.technavio.com) is forecasting positive growth for many segments of the publishing and advertising market over the next four years as several markets, including mobile ad spending, programmatic ads, and advertising display, will witness an increase in revenues.

A rapid increase in the number of mobile devices such as smartphones and tablets has compelled advertisers to choose mobile advertising over other forms of advertising. Recently, it has been observed that many service providers have developed tools for programmatic advertising and real-time bidding. These tools allow app developers and advertisers to monetize customer usage by displaying relevant ads, according to Technavio.

These ads are customized based on data regarding the customer’s mobile usage, location, and search keywords acquired from cookies embedded in apps and web pages. Technavio market research analysts predict the global mobile ad spending market to grow at a CAGR [compound annual growth rate] of about 15% until 2020. Programmatic advertising is one of the fastest growing segments of the global advertising and publishing market.

It helps advertisers target their audiences better while gaining a deep understanding of data. Additionally, programmatic advertising enables advertisers to modify advertising campaigns real-time, depending on the data results. To leverage its benefits, many advertisers are opting for programmatic advertising while publishers are expanding their programmatic sale inventories.

In-depth analysis of the market by Technavio shows an increase in the number of visitors logging into Facebook will likely boost the RTB market until the end of 2020. These developments are anticipated to help the programmatic advertising market record a CAGR of more than 20% over the next four years.

“The forecast period is likely to witness advertising media emerge as the largest revenue contributor for the global publishing and advertising market. Much of this segment’s growth can be attributed to the emergence of out-of-home media, which is an innovative advertising medium for potential customers. Due to the growing popularity of outdoor advertising, the revenue for this is expected to surge until 2020,” said Soumya Mutsuddi, one of Technavio’s lead analysts for media and entertainment research. “Geographically, the APAC [Asia-Pacific] region has dominated the advertising displays segment in 2015 and also accounted for a market over 54%. It generated a revenue of more than USD 9 billion during this period.”

Over the next three years, competition will intensify in the global mobile advertising market, as many app developers and advertising agencies are anticipated to invest in designing, planning, branding, and in expanding their existing applications by acquiring new and small players, according to Technavio. Growing investments in infrastructure will likely drive the global advertising displays market during the estimated period. It is also to be noted that the presence of low entry barriers will attract more players to the programmatic advertising market.

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