[dropcap]W[/dropcap]e are living in exciting times. A quick glance at the figures would make it crystal clear how the internet has penetrated to the deepest corners of the country in the last few years. According to a report by Internet and Mobile Association of India (IAMAI) and KPMG, there are currently 236 million internet users in India that are expected to reach 314 million by next year.
With the third largest Internet user base in the world out of which more than 50% are mobile-only internet users, a high 65% of mobile traffic in India is through mobile. These figures easily reflect the fastest and easiest way to reach the masses of the second most populated country in the world.
According to Cisco Visual Networking Index (VNI) Forecast, the annual Internet Protocol (IP) traffic is predicted to quadruple between 2014 and 2019. With such a high demand for smartphones and it fast becoming the preferred medium, it was a matter of time before mobile advertising evolved from SMS and call-based marketing in 2006-07 into a more sophisticated phenomenon that now includes mobile web and in-app ads, mobile search, and social networks.
The total amount spent on mobile advertisement has reached $173.2 million in 2015 end that was $78.7 million in 2014. Out of the 40 percent that is spent on App advertisements, 25 percent is spent on mobile ads. Internet companies like Google Inc. and Facebook Inc. caught on the trend in India early on—a move that helped them become two of the largest entities in the country’s mobile advertising space.
According to industry estimates, mobile advertising has expanded to $70-$80 million in 2015 from a $25 million market in 2011 in India, growing at 60-70% annually. Firms are spending 2-4% of their overall media advertising budgets on mobile ads. This expenditure is expected to grow to 15-20% of the overall media expenditure by 2020, analysts say.
According to a Groupe Speciale Mobile Association report, Indians accessing the Internet over mobile devices expanded from less than 100 million in 2010 to nearly 300 million at the end of 2014. This is likely to double to 600 million by 2020, which presents a huge opportunity for marketers.
Global e-Commerce sales made via mobile devices are expected to cross $638 billion by 2018, according to the joint study brought out by ASSOCHAM and Deloitte said.
The mobile commerce consequently is also in the rise. 50 percent of the revenue of major e-tailers India comes through mobile apps. The global mobile commerce sales are expected to cross $638 billion by 2018.
E-tailers like Flipkart, Amazon and Jabong now get around 50% of their revenues from consumers shopping on their mobile phones. Predictive analytics is helping the e-tailers to provide better solutions in real-time enabling compelling user experience even on mobile screens.