Size of mobile market in India
Mobile advertising in India is still nascent. Mobile ad market in India as on Sep 2012 was around INR 1.8 bn. But at the same time it is a growing market, with dramatic growth rates, doubling year over year.
India’s share in global mobile Ad servings as
on Nov 2012 was 52% and consumers in India are demanding highly relevant, personalized, content
rich products and services on mobile
Reasons behind the growth
The reasons behind the mobile market growth in India are external to the advertising environment. Since the handsets are cheaper, they are more accessible now. Another reason for growth is the introduction of mobile data plans, which have allowed access to Internet on-the-go. The result of these factors is that now mobile is seen as a media device, besides being seeing as a communication device only. It is not only used for connecting and talking to people, but also for checking emails and news content, social media and other services.
Further to these external changes happening on the consumer’s side, the advertisers
have also found avenues to invest in mobile. Five years ago, though there was excitement about the medium, there were not as many avenues as there are now. Now both these factors coupled together have made it a lethal combination for advertisers. With the introduction of 3G this year, it is going to help the market grow even more significantly as the users will consume better with better connectivity. The mobile advertising market has evolved from a stage of mobile Internet being used for email access, to being used for social, to now being used for accessing various kinds of content
from news to sports to games. We are now choosing to use a mobile phone to get instant access to the content, also because of better connectivity.
India vs. other markets in the world
The difference between India and other countries is that it is a mobile-first market. This means that for most people, the first Internet experience happens on the mobile, making it the primary mode of content consumption. This is different from other countries, which have a higher PC penetration, as there, the Internet consumption happens first on the computer.
Biggest advertisers in India in mobile media
One of the largest sectors in mobile media advertising is the automobile industry
with brands such as Maruti, Honda and Yamaha engaging in mobile. FMCG brands such as Unilever, PepsiCo and Coca Cola, and telecom advertisers such as Nokia, Karbonn, and Micromax, follow the automobile industry.