The mobile phone has become one of the primary devices used by the consumer today across the globe. A similar trend is visible in the Indian market as well. With a total of over 1 billion mobile connections, India today is the fastest growing mobile market, adding more subscribers annually than China. India is expected to grow faster, at the rate of 15 per cent, than the global average of 5 per cent to reach 1.2 billion mobile subscribers by 2020, adding a total of 165 million new mobile subscriptions during this period, according to the report titled ‘Mobile Ecosystem and Sizing Report’ from the Mobile Marketing Association (MMA) and GroupM. It is important to note here that the rural markets in India now account for close to 60 per cent of the total new mobile subscription.
Marketers have been quick to recognize this shift. With a view to tap the growing consumer base, the advertising spend on mobile in India is estimated to be Rs 4,200 crore (US$ 630 million) in 2016, and further grow to reach Rs 10,000 crore (US$ 1.5 billion) by 2018, the report added. Advertising spending on mobile phones is more than half of the estimated Rs 7,300 crore (US$ 1 billion) ad spend on digital media, as per the report. Clearly, with mobile emerging as the third largest medium (after TV and print) for advertising in terms of ad spends, the fact that it is one of the top mediums in terms of time spent and consumer engagement makes it a strong contender in the race to tap the consumer.
With sectors like as e-commerce and BFSI (banking, financial services and insurance) already buying the mobile advertising growth story in India, a vast sector like consumer products is also now going beyond the traditional SMS and IVR based mobile solutions in India. India has the potential and the required ammunition to become a global leader in mobile marketing innovation. It is just about time that companies across sectors evolve in terms of understanding mobile marketing, best practices and understanding of ROI from the medium.