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4G Brings Promise of Mobile Advertising in India

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4G Brings Promise of Mobile Advertising in India

January 11, 2016

  By Michelle Amodio, TMCnet Contributor

Here in the U.S., we are no strangers to the amount of advertising we see on a daily basis. While television is still a boon for marketing, many have turned their sights toward digital marketing. With the advent of better connectivity and faster speeds, mobile advertising has become just as important as its television and radio counterparts. For areas that are lagging in terms of technology, digital advertising hasn’t been as big of a drive for companies, but that’s all about to change, especially for countries like India.

According to new research from Deloitte (News - Alert) India, spending for telecom firms is on the up and up, and 2016 is shaping up to be a good year in terms of advertising. The reason being is telecom firms are putting their dollars into 4G connectivity, thus opening up new avenues for mobile ads.

“Advertisers will be spending more money on video ads on hand-held devices in 2016. Advertisers will think mobile-first when making their digital advertising strategy. With more telecom operators ready to launch 4G services, video consumption on mobile will rise even more, thus pushing ad spends on video ads," said Deloitte India's Ashesh Jani in an interview with PTI.

There is a lot of emphasis on the power of mobile advertising since smartphones have become commonplace. According to eMarketer (News - Alert), Google and Facebook are responsible for a majority of growth in mobile ad spending. To give you an idea of how major this push is, both companies saw their net mobile ad revenue increase by $6.92 billion in 2013.

Based on recent statistics, it’s evident that India will have the demographics that marketers are looking to reach. According to the Internet and Mobile Association of India, 60 percent of subscribers access the Internet via mobile devices, and that number is anticipated to hit 315 million by 2017. What’s more, ComScore says online video consumption grew 100 percent in the last two years. Those are some staggering statistics.

"Digital media continued to show the maximum year-on-year growth, above 30 percent in 2015. Video, mobile and social media are biggest growth drivers for it," said Jani.

Emerging markets have attracted significant investment from international mobile operators, and many players will be rewarded with growth in subscribers and revenue.

“The ongoing launch of high-speed 4G data services is set to become the next battleground for telecom firms. The industry is expecting operators like Airtel, Vodafone (News - Alert) and the soon-to-be-launched Reliance Jio to spend millions of dollars on advertising over the next few months to grab market share," said Jani. 

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