Will ‘madware’ cause muted ad growth in MENA ?

When mobile penetration is at its highest, can the sharp rise of madware in apps slow growth for advertising?

Aggressive mobile advertising in apps has been raising such a ruckus for Android users that it has now been coined ‘madware’.

Security firm Symantec recently reported 23 per cent of all apps on Google Play had ‘madware’ in 2012, which included the creation of ad icons, displaying ads on the notification bar and changing web browser bookmarks.

The percentage is up from 15 per cent last year, making it a fast growing problem and a nuisance for mobile users. Meanwhile, developers are trying to monetise the supposedly free apps by combining them as a free package to users but with madware.

With all the excitement over mobile phone penetration in the Middle East, is madware slowing down ad growth and deterring users from downloading apps in the first place?

Halla Al Rozouq, senior executive of Exchange Digital at Mindshare UAE, says: “Though madware amongst the smaller apps is significantly growing, offering very intrusive and possibly privacy-violating ad formats, I don’t foresee a decline in app adoption amongst users, for the simple fact that most of them don’t even realise how and why this is happening in the first place.

“With mobile now representing over 50 per cent of website traffic, search volumes, and social sites, advertisers will continue to invest in mobile advertising, with app investment representing part of that total ad spend. Advertisers will eventually restrain from using intrusive ads that may deliver fake results and that generate negative sentiments amongst their target audiences.”

Atif Mohammed, manager of digital media at BPG Maxus, says: “Users have been exercising their freedom in blocking and uninstalling apps that facilitate its propagation as well as installing security apps that prevent madware carrying apps.

“In the short term, madware could negatively affect mobile apps. However, in the long run, the effect will prove negligible as users keep voting against it.”

Abdul Khadar, director of technology at MRM, Dubai, adds: “Mobile has become a core channel in today’s integrated advertising campaigns and its share is only going to grow more. On the other hand, proliferation of madware is unlikely to halt any time soon.

“Effective marketing relies on consumer trust, both in the product offerings and also in the purchase process. However, ongoing security breaches, madware and mismanagement of privacy information has eroded consumer confidence and they are becoming aware of how their personal data is being handled – making conscious choices to choose sites, applications and security apps.

“Marketing professionals need to understand this trend and be prepared and ensure that their customers’ privacy is protected with potential advertising growth.”