Indian companies spend Rs 300 crores on mobile Ads in 2013, which nearly one and half times times the amount spent the previous year, Rs 180 crores, according to a recent report.
The rapid increase in mobile and wireless connectivity is India played a major role in driving the growth of internet penetration in India and its key beneficiaries are new media segments, including internet advertising, online classifieds and gaming.
Some of the important factors that contributed to this growth include the availability of a wide range of smartphones and tablets across the price band, especially the lower end Android based phones, the Mobile Ad Spends India report by MMA said.
The decline in mobile tariff of high speed data plans like EDGE (GSM 2.5) and 3G, which added more data plan subscribers, was also another boost to the mobile Ad market.
The mobile Ad market also benefited from the rise of media-rich content customised for smaller screens and mobile platforms which ensured that audience get content and services, including music, movies, radio, live content streaming, games, business and leisure applications, mobile and ecommerce.
The overall Ad spend on digital medium are estimated to be around Rs 2750-3000 crores, which shows that mobile Ad spend account for nearly 10-15% of this spending.
India, unlike a lot of other Asian countries, had been lagging in tapping the mobile advertising market, with SMS and IVR being the main mobile advertising channels until recently. This has changed since around 2009 with the picking up of mobile internet.
Travel and Banking, Financial services and Insurance(BFSI) remain the highest growth sectors of mobile ecommerce in India is slated to see faster growth in metro cities. Travel and travel related searches are one of the leading search trends in this sector.
The report also said that it expects to see a 43% rise in next years mobile Ad spends, touching Rs 430 crore.
Recommended Read: The bigMobility Trend in India: Stats and Insights You Need to Know