At Mobile World Congress (MWC) in Barcelona, the biggest names in mobile and technology came together to discuss what products and trends will shape the market in the coming years. With smartphone users worldwide expect to reach over 2.5 billion by 2018, one of the main topics on the minds agencies, brands, and innovators is how to fully leverage mobile to extend and enhance the reach of their marketing message.
When it comes to understanding mobile’s full potential, we see four major trends that will have a significant impact not only on how people use their phones, but how brands are able to interact with and influence consumers.
The Growth of Programmatic
Programmatic ad buying on desktop has been a trending topic for some time now, but 2015 will be the year programmatic goes mobile and global. According to eMarketer, 69% of total programmatic display advertising spend will come from mobile by 2016 with the largest growth coming from programmatic direct. Outside the US, programmatic has been slower to gain traction, but top marketers from across the globe report that they expect usage to increase substantially over the next two years. As early adopters become more vocal about the efficiency and automation that programmatic brings to the media landscape, expect marketers and publishers to speed up adoption globally in mobile.
Large Format Phones
Following the launch of the larger screen phones from Apple and Samsung, sales of phablets – phones with screens larger than five inches – are expected to outsell both smartphones and tablets globally by 2016. We are already seeing a change in mobile behavior. Phablet users are spending significantly more time on social media and more time overall in front of their screens. This means new and increased opportunities for advertisers to reach these consumers.
The Power of Location
Location-aware apps represent a large and growing subset of the mobile application marketplace. These apps are changing the way we shop, travel, eat, and connect with each other. Last year, by accessing users’ GPS location Uber provided convenient transportation in 53 countries and Tinder matched 21 million nearby lovebirds per day. As location becomes a standard part of consumer experiences, marketers will need to provide tailored messaging and purchase opportunities that speak to this location-aware mindset.
Mobile-driven commerce
The consumer path-to-purchase is experiencing a fundamental change. Mobile devices are now a necessary part of purchases - on-device, online, and in-store. Nearly 86 million consumers will make a purchase on their device in 2016, but mobile’s impact isn’t limited to mCommerce. With more and more retail browsing coming from mobile, smartphones are also a vital part of researching for traditional ecommerce and brick-and-mortar shopping. This shift makes mobile a medium that simply can no longer be ignored by marketers.
Tens of thousands of people attended Mobile World Congress to learn what’s new and next in mobile. For all the players in the digital marketplace at MWC and beyond, these four trends have implications for businesses and consumers alike. From how people shop to how they get information and what expectations they have of the brands and businesses they frequent, understanding these four trends and their implications is fundamental this year.
To learn more, download the full report here.
Sarah Ohle is director of market research at xAd
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