Mobile ad spend in India reached INR 300 crores, up from INR 180 crore last year

mobile-marketAs compared to the West, Mobile advertising is a new concept in India, but its adoption has gone up considerably over the last one year. According to a report released by Mobile Marketing Association, the mobile ad spend figure by Indian companies is INR 300 crores in 2013, making it an increase of almost one and half times times the amount spent in the previous year, INR 180 crores. Moreover the ad spend figures have exceeded from no less than INR 50 crore – if compared to the projected growth for 2013, set last year.

The rapid increase in mobile and wireless connections is driving the growth of internet penetration in India and its key beneficiaries are new media segments, including internet advertising, online classifieds, and gaming.

Anurag Batra, Chairman and Editor in Chief, ExchangeForMedia believes that mobile marketing is becoming mainstream each day and marketers today are talking unique initiatives around Mobile. “The market which currently holds a value of INR 300 crores will end up to become INR 3000 crores in five years, that is a 10 fold increase.” added Anurag.

According to the same report, one of the key factors of the growth of mobile ad spends is Small Medium Businesses, which however are “not being adequately tracked.” The report also suggested that the industry needs to develop methodologies in order to measure the contribution of SMBs towards this growth.

Other factors which led to this shift is the increase in smartphone penetration which then led to a dynamic increase in number of people using internet on mobile.

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According to a survey conducted by On Device Research, 59 per cent of Internet users in India use primarily mobile to access Internet which means that for a large number of Indians, mobile is the first and only device for Internet connectivity.

Mobile Marketing Association (MMA) is a global non profit organisation established to foster the growth of mobile marketing ecosystem. Headquartered in US, its representative companies are located in over 40 countries around the globe.

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