Ad spending on cellphones to hit ₹13,325 crore by 2020: Report
NEW DELHI: The ad spending on mobile is estimated to grow at a compound annual growth rate (CAGR) of 59% to reach ₹13, 325 crore by 2020 with affordable internet and cheap smartphone driving content consumption, says a report from Dentsu Aegis Network owned social media agency WAT Consult.
The mobile ad spends stood at ₹2,525 crore in 2016.
Titled ‘Consumer Perception and Effectiveness of Mobile Ads in India’, the report based on interviews conducted among 1500 people across India, highlights aspects of mobile advertising like perception towards mobile ads, preferred ad formats, consumer preferences and concerns.
“There will be close to 450 million mobile internet users in India. Consumers are starting their digital journey through mobile for multiple activities like shopping, booking tickets, entertainment and content sharonline ing. 86% of the total time spent on internet by Indians is on their mobile devices. I believe marketers should not ignore this medium by calling it nascent anymore,” said Abheek Biswas, associate vice president - consumer insights, WATConsult.
According to the report, affordable data connectivity has played a crucial role in bringing consumers on the mobile device. Owing to 4G roll out, a majority of Indians view mobile ads on their smartphones (75%) followed by laptops (42%) and desktops (30%). 4G also happens to be the most used data connection with 66% respondents using 4G services followed by 3G (37%)and Wi-Fi (31%).
While people use mobile devices primarily for social networking, desktops and laptops are being used for work and educational purposes. In terms of activity, most smartphone users use their devices heavily for accessing social networks and e-mails, followed by online banking, usage of e-wallets, watching videos and online shopping.
It is no wonder that 48% of the respondents said that they prefer social media ads the most, followed by video, e-mail and search ads when it comes to mobile ad formats.
The findings reveal that while consumers perceive mobile ads to be more useful, they lack in terms of engagement as compared to desktop ads.
In terms of brand categories, mobile ads for electronic products, clothing and footwear, books, movies, games and music are clicked the most and purchases made. While health and fitness as well as food and beverage ads are clicked a lot, they do not usually lead to a purchase. Meanwhile, ads from categories including jewellery, pharmaceuticals and insurance products are not clicked much.