The global mobile advertising market has been presenting a promising upward growth graph, which can be attributed to the rapidly accelerating adoption of smartphones and tablets around the world. According to market analysts, approximately 90% of the adults in the United States own a mobile phone, out of which around 60% are smartphones. The Mobile Marketing Association (MMA) states that in the foreseeable future, smartphone penetration in the U.S. will expand and become 80%.

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Making the Most of Massive Consumer Base

With consumers carrying mobile devices wherever they go, it has become crucial for marketers to target this large consumer base with mobile advertisements and promotions. A mobile advertising platform firm provides services to marketers that allow them to send these advertisements to consumers using mobile devices. Each distinct mobile advertising platform contains opportunities for marketers to deliver their message to a broad range of consumers.

Two of the leading platforms in the world are Android and iPhone. BlackBerry is slowly gaining pace in the market as a mobile advertising platform. Mobile advertising platform and related technology allows advertisers to deploy advanced targeting technologies so that they can reach their audience of different demographics, characteristics, and criteria. This trend, along with increasing smartphone penetration, is further driving the global mobile advertising market. Advertisers and the media industry are increasingly considering the numerous opportunities presented by the fast-growing mobile market.

SMS Segment Dominates the Mobile Advertising Market

There are several types of mobile advertising services that marketing and advertising firms provide on mobile devices. Generally, mobile advertising services work with clients from the planning stage of the advertising campaign, the design stage to create it, the implementation stage of the campaign, and the monitoring and tracking stage.

Mobile advertising services can be deployed to send text messages to cell phones. These services are also used for marketing using banner ads which appear on smartphone applications. These ads appear at the top of the page (mobile web banner) or at the bottom of the page (mobile web poster). SMS advertising, which accounts for over 90% of the total mobile marketing revenue, dominates the market. One of the advantages of SMS is that it allows users to view and send brief messages unobtrusively and without any privacy issues. MMS (multimedia messaging services) is another form of mobile advertising. Some other forms include advertising within mobile videos, mobile games, during mobile TV receipt, and full-screen interstitials. Full-screen interstitials appear when a requested item on a mobile web page is loading and an audio ad takes form of a jingle before a voicemail recording.

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Mobile Advertising Market Predictions

In the coming few years, the global mobile advertising market will observe advertisers focusing more on performance. They will increase their spending as their ROI gets clearer along with more valuable and quantifiable results. The preference of location-based advertising is growing and will continue to assert its importance in the future. Location-based technology allows advertisers to deploy hyper-targeting, which enhances the effectiveness of mobile advertisements.

A growing number of marketers have started promoting their mobile apps using videos. The results of this strategy are very effective as more and more users are viewing them. Hence, in the coming few years many advertisers will take prefer video over one-dimensional ads. Another trend that will be noticed in the next few years is personalization of ads. Advertisers will start investing in mobile advertising especially tailored for the consumer.

The global mobile advertising market is fragmented in nature with many established and new players in the market competing for individual space. Some of the leading mobile advertising agencies are Phone Valley, Sponge, Mobile Dream Factory, Groupo Mobile, and Hungama Mobile.