Within the next four years the number of smartphone users will be twice as much as it is today. In 2021 the app economy will be the third largest national economy of the world: The future of advertising lies in the mobile sector and has already started to define and shape the advertising market today.
The smartphone has become our daily companion. Whether we are in a shopping mood, in a meeting, trying to distract ourselves or reaching for it out of boredom, the mobile phone is the number one go to device we use in everyday life. The number of smartphone users will almost double from 3.4 billion in 2016 to 6.3 billion people in 2021. For advertisers, this means that mobile devices will become the most important connection with consumers. From shopping and booking a trip to banking or entertainment: the needs of the people will be largely satisfied via the smartphone.
As a study by App Annie shows, the total amount of time spent in Apps will exceed 3.5 trillion hours worldwide by 2021. By 2021, the global app economy will be the third largest national economy.
Mobile devices will become the most important device for many consumers when it comes to connecting with brands. This means that marketing within the mobile channels has to develop faster and faster.
App stores, in-app advertising and mobile commerce are boosting the business
The main drivers behind the enormous increase of the worldwide value of the app economy from 1.3 trillion US dollars in 2016 to 6.3 trillion US dollars in 2021 are app stores, in-app advertising and mobile commerce. This stems from the ever-growing worldwide user base.
Advertisers have also started to notice that consumers tend to spend more of their time within apps. Once advertisers recognise the value of the long-term tracking possibilities of in-app advertisement combined with the rich audience data, they are expected to increase eCPMs of in-app advertising by 50 to 100 percent by 2019. In addition, in-app expenses account for over 90 percent of the total mobile ad expenditure, which corresponds to a growth of more than 40 percent within the first quarter of 2016 compared to the previous year.
How do people react to mobile advertising and how can they be reached?
The results of the IAB Trendmonitor on mobile advertising provide insight into the development of the human behaviour with regard to mobile advertising:
- 25% of people find mobile advertising rather or very helpful if it matches the content of the website
- One third of all users have already interacted with a mobile ad format on mobile websites
- Mobile advertising is judged to be the most creative by the age group 20-29. Almost half (47%) have already clicked on the ad of a mobile page
- When it comes to the decision between free mobile content with advertising or paid and ad-free content, the majority (79%) will choose free access to mobile content.
Catching users in a shopping mood
Young, mobile natives are the most appealing age group when it comes to mobile advertising. Catching this generation in a shopping mood is the best prerequisite for mobile advertising. On many apps such as the boot sale app Shpock, young people are particularly receptive to offers and new products because they have a real and immediate intention to make purchases.
About Shpock – the marketplace of the new generation
Shpock is a mobile marketplace that brings millions of private buyers and sellers and local businesses together. Shpock has more than 10 million active users and over 2 billion page impressions. These numbers and regular #1 rankings in the App & Google Play Store in 6 countries (UK, Germany Italy, Austria, Sweden and Norway) make Shpock one of Europe’s most dominant shopping apps.