As marketers reevaluate all the marketing tools in their arsenal, it’s undeniable that change will be coming faster than ever. Stepping into 2014, we know that businesses will move away from a channel-centric approach to a customer-centric one. By optimizing marketing efforts to center upon the customer, mobile will maintain its position as a primary marketing channel. Here are some predictions on the biggest areas of change we’ll see in 2014.
MASSIVE PUSH INTO THE APAC REGION
We are seeing the continued rise of smartphone proliferation in APAC. Asia is the largest growing smartphone market with a 77.3 percent increase (Gartner). In fact, from January to September 2013, consumers from Singapore, Malaysia, Thailand, Indonesia, Vietnam, Cambodia and the Philippines spent over $10 Billion on 41.5 million smartphones (GfK Asia).
As the fourth largest country in the world, Indonesia is leading the way in smartphone growth. More than 15 million smartphones were sold in Indonesia in 2013, a market of more than $3.5 billion (GfK Asia).
China is still a huge opportunity for mobile advertising, especially with new mobile players entering the market.
Developers and advertisers will have an even stronger focus on Android in Asia. Cheaper phones, more device variety, and a comparatively open operating system have led to Android accounting for 72% of new operating systems shipped in APAC in 2013 (IDC).
SCREENS AND CONNECTIVITY WILL BE AT THE FOREFRONT OF INNOVATION
Wearable technology is still a nascent market, but points to a powerful mobile trend in which people want faster, more convenient access to information.
We expect to see larger screen sizes affecting not only devices, but fashion itself, with purses and pockets getting larger to accommodate these bigger devices.
The global growth of 4G is driving better digital experiences and increasing video consumption on mobile. This added connectivity will positively impact both content and advertising on mobile.
With over 80% of mobile users under 24 years of age sleep next to their phones, and 87% of mobile users experiencing “phantom cellphone vibrations,” it’s undeniable that dependency on mobile will increase (Pew Research).
FEATURE PHONES ARE DEAD. MOBILE ADVERTISING WILL GET SMARTER AND MORE SOPHISTICATED
Smartphones are cheaper than ever. Entry-level phones now match the quality of mid-generation iPhones. The market is experiencing a kind of “Darwinian effect,” where ‘Dad’ is now using his fourth or fifth generation smartphone, so we’re seeing an increase in hand-me-down smart devices.
With 4.5 Billion mobile users and an increasing number of smartphones, mobile ads need to be smarter and more native. The mobile ads of 2014 will leverage several layers of user data, including location, to make messaging highly relevant.
Mobile advertising is seeing a massive uptick in key consumer industries:
- CPG companies are leveraging mobile to increase brand awareness.
- Luxury goods companies are utilizing mobile to drive foot traffic in stores and drive online sales.
- Travel is already a major mobile market. We will see more travelers booking directly through the mobile ads, and engaging with mobile apps pre and post travel.
IT’S ALL ABOUT THE DATA
Mobile ads can now leverage more data, from more sources, at a significantly faster speed, to target the right consumer, at the right time based on location and product need. Companies that can make the best use of data will be the most successful.
Mobile operators are in a great position in the mobile advertising ecosystem, and will continue to leverage subscriber information securely.
More companies will strategically use data to create long-term relationships with mobile users to generate higher lifetime value from each customer, particularly through mobile brand apps.
WI-FI IS UNCLAIMED REAL ESTATE
The rise of mobile devices has made Wi-Fi ubiquitous. Increasingly so, consumers have come to expect Wi-Fi availability nearly everywhere they go.
We are seeing more ad budgets directed toward capturing the captive audiences using Wi-Fi in high-trafficked places like hotels, airports, casinos and sports stadiums.
Trevor Healy, CEO of Amobee