Mobile commerce: A next step to mobile advertising in 2015

February 17 2015

We are living in a world where smart gadgets are a big-league to people! Today smartphones are part of our lives. 95% of the people don’t leave their places without their mobile. People of 21st century spend most of the day with their mobile browsing over thousands of websites each day and why not! Today, almost every pocket has a supercomputer, encouraging us to seek information and act on it, doesn’t matter where we are.


Knowing the scenario that approximately 70% of smartphone users find it to be the best platform for their search, advertisers are framing their ads campaigns targeting this stratum of audience. For advertisers, it is important to understand the influence of the mobile ads below and above the search result. New study says that most of the world gets attracted to search ads while browsing to unique sites.

Today, CPI dominates the ad format in smartphones. App developers strive hard to acquire users, without bothering for rising CPI costs. There is an annual increase of 44% on Android and 16% on iOS according to recent Indexes.

Big industries are capitalizing on this trend. For example, 59% of Facebook’s Q2-14 advertising revenue came from mobile; the majority of which was given by CPI. Other companies include Pinterest with the announcement of the upcoming ability to add tracking pixels to Pins and Twitter with the release of a Mobile App Promotion product.

Rising CPI act challenge

Despite the targeting power of mobile commerce, rising costs will make it increasingly difficult to set market share with CPI advertising. Application developers will shift towards social app store optimization, social channels and campaigns based on user engagement.

So, what is next? Based on current market trends and research, we expect mobile commerce to rise as a new leader in mobile advertising.

How mobile advertising is enhanced by social networking?

For digital players, the road to riches on screens riddled with holes of divergence has been a long way ahead; but the pursuit has gotten more promising thanks to the social media. Billions are expected to be spent on social advertising this year and is directly or indirectly controlled by Google, Twitter and Facebook.

Now, the question is: Why is Facebook and Twitter doing so well in mobile advertising while many others continue to struggle? Mobile advertising is on course to comprise 84 percent of Twitter’s and 68 percent of Facebook’s revenue by the year’s end.

Mobile advertising went through various implementations and formats before it reached the scale, now enjoyed by social networking site. Scale conversion is targeted by marketers and advertisers with this innovation. Relationship with users coupled with all the behavioural trend and data gather slowly from their social activity and makes all the difference.

New Age Digital Dollar Shift

Everyday millions of people invest in digital spending. Digital spending has become a priority for increasing streamlined customers. There is a great drop in traditional marketing dollar, as digital dollar is snatching a bigger slice of budget.

  1. Approximately a quarter (23.5%) of b-to-b marketers expect to spend 50% to 74% of their budgets on digital this year.

  2. It is important to note that there is decrease in traditional media spend such as TV (-7.2%), Print (-24% decrease) and Radio (-6.9%)

  3. Spending trends on website improves and is on the rise with +66.1% increase over previous year.

  4. Video and social media investment is high on the digital priority list. This year, 62% more is allocated to Video companies and Social Media spending will rise by 58%.

Challenging Application developers

To capitalize on the growing revenue stream, app developers charge to prepare for this shift in mobile advertising. Only those developers sustain growth who can serve with relevant advertising to engaged audience. To enable that, shift developers should look for partners who are developing the technology to support mobile commerce solutions.

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