The mobile advertising market needs consolidation
The Russian mobile advertising market lags far behind the world in terms of turnover. App2Top believes that the consolidation of mobile advertisers in popularizing the direction can help the cause.
Revenues from the mobile market will only grow in the near future. This is obvious to everyone in the market. There are many factors contributing to growth. This includes the growth of the user base, the transition to a free-to-play model that removes restrictions on maximum costs, and, of course, the massive expansion of advertisers to a new platform.
For the latter, the advantages of the mobile segment are obvious: constant access to a potential buyer (the user constantly interacts with a smartphone), targeting up to the “geography of the user” and, of course, the ability to more accurately assess the effectiveness of an advertising campaign.
But there is one subtle moment for today. Advertisers are an inert people. So, despite the numerous advantages of mobile advertising, very few people resort to it yet. As evidenced by the data of Mary Meeker, whose research we wrote about a year ago.
Recall that the bottom line is that mobile advertising has eaten away 10% of the advertising market in the United States, and it accounts for about 1% of advertising budgets in terms of the costs of “big companies”. The growth potential in the US alone is about $20 billion. Evaluate the possibilities!
For reference, according to Gartner, mobile advertising earned about $3.1 billion in 2012 alone.
Igor Lobanov, digital director of the Mobimark Group agency, in his report “Mobile Advertising beyond SMS” at the Design and Advertising conference, compared these indicators, based on J’son & Partners data, with the Russian market.
In 2012, the volume of the mobile advertising market amounted to $114 million. The figure is incomparable, given that Russia is currently one of the top mobile application markets.
Yes, the market will grow, J’son & Partners promises that by 2015 it will reach $404 million, but it is also clear that it will not be able to keep up with the sales of applications and digital content. And, as it seems to us, one quite clear conclusion follows from this (although, to be honest, it looks more like a wish): consolidation is needed in the popularization of such a service as mobile advertising.
At present, when big brands have not yet come to this market, and new ones are not yet making themselves felt, consolidation will attract the attention of retail, which will immediately have a strong impact on the profitability of the entire mobile sector, and hence mobile gaming revenue.
