Mobile Web To Be Valued At $850 Bil By 2018
Projections indicate that the mobile internet will be worth more than Apple — and the rise in location ad spend is a big part of that.
Mobile web services, which include everything from m-commerce to consumer apps to mobile ad spending, will more than triple by 2018, growing from $300 billion last year to $850 billion by 2018 — which, considering the declining growth rate of mobile phones, would make the mobile internet worth more than Apple, according to Digi-Capital’s industry forecast
Mobile commerce is leading the growth charge in the mobile web market by far, but mobile ad spending is projected to make up the second largest piece of the pie by 2018. The translation: If it wasn’t already apparent, retailers who aren’t leveraging mobile — both for m-commerce and for serving location-targeted ads to bring customers in-store — are set to fall far behind.
As mobile advertising becomes increasingly native, the gap between mobile usage and mobile ad spend share is closing rapidly. In fact, mobile ad spending could top $85 billion by 2018, the firm reports. As customers increasingly look to their phones — and now, connected devices like the Apple Watch — to meet their needs in the on-demand economy, they actively expect to be reached there with relevant deals, suggestions, and offers.
In a separate projection, BIA/Kelsey forecast that location-targeted mobile ad revenues specifically would grow from $6.8 billion in 2015 to $18.2 billion in the U.S. by 2019. This rise plays into Digi-Capital’s projected spike in mobile overall; in a sense, location-based advertising has been a primary driver of mobile. And as consumers’ time-spent with their smartphones has exploded, so has their openness to communication through portable devices — and ad spending is finally starting to follow.
As such, the opportunities are great for marketers who tailor their ads to the right audience at the right moment with accurate geo-data; consumers are more conditioned to be receptive, and are therefore more likely to act. And as the mobile web continues to grow, this reliance on smartphones is poised to continue to increase in tandem.
“The mobile internet is only eight years old, having disrupted the market more rapidly and fundamentally than the original web 20 years ago,” Digi-Capital states. “While the top grossing charts are relatively mature, rapid growth and change across the rest of the market means there is still a lot to play for.”