New Delhi: The power of smart phone is clearly visible in the advertising sector. The Mobile Medium is the third largest mass media in India in terms of ad spends, after Television and Print. The ad spends on Mobile media is estimated to be Rs. 4200 Cr. by the end of 2016, and is expected to grow to Rs. 10,000 Cr. by end of 2018, as per the research report titled Mobile Ecosystem and Sizing Report, released by The Mobile Marketing Association (MMA), in association with GroupM, India’s largest media and marketing conglomerate.
The smartphone has emerged as heartland India’s ticket to rich user experience in communication, entertainment and retail, allowing marketers to tap into both urban and rural markets with Mobile Marketing. The growing use of mobile in rural media-dark markets has made brand marketers look at increasing their ad spends on mobile marketing. While spends are increasing, organizations are still evolving in terms of familiarity with mobile marketing. Industry sectors such as e-commerce and BFSI are leading the way in mobile advertising, while sectors such as FMCG are now going beyond the SMS and IVR based mobile solutions. The report also brings in perspectives on the role of local language in enabling the next spurt of growth in rural India.
The ‘Mobile Ecosystem and Sizing Report’ is an endeavour to decode the burgeoning Indian mobile market in terms of reach of the medium, rural-urban divide in-terms of usage habits and increasing mobile data usage. The report takes into account the mobile service providers and handset manufacturers ecosystem as well. It is a collaborative effort by the marketing and mobile industry, championed by the research team at GroupM India.
Commenting on the findings of the report, CVL Srinivas, CEO, GroupM South Asia said, “It is clear that brands cannot ignore the power of the small screen. It may be the third largest (after TV and Print) in terms of ad spends but is by far the leader in terms of time spent and consumer engagement. India has the potential to become a global leader in mobile marketing innovation and it is our endeavour to work with the rest of the ecosystem to make this happen”. CVL Srinivas is also a member of the MMA Board in India and Chaired the task force on the Mobile Ecosystem and Sizing report.
Speaking on the mobile ecosystem report, D Shivakumar, Chairman and CEO, PepsiCo India Holdings and Chairman of the Mobile Marketing Association said, “There have been several reports that discuss mobile marketing in India. However, MMA felt there was a distinct need for a single comprehensive report that covers the mobile marketing ecosystem in India and provides insights to marketers to help them make sharper decisions. This report by MMA in collaboration with GroupM & partners is the MMA attempt to address this much felt gap.”
2015 has been a good year for mobile subscriber growth in India. Over 60 million new mobile subscribers were added since the start of year, at an average 5 million subscribers added every month. This was a 20% growth in comparison to 2014. Research has found that in the last 5 years, rural tele-density in India has increased by 60%; rural mobile internet subscriber saw a 90% YOY growth in 2015 and they are using the internet primarily with their mobile phones.
In terms of usage, the report clearly states the varied usage patterns between urban and rural consumers. While urban consumers are adopting 3G and 4G technology at a much faster rate, the growth spurt in new technology and smartphone penetration is coming from the Tier 2, Tier 3 and rural markets. There is a high demand for affordable smartphones in rural markets, as mobile phones are replacing or supplementing TV as an important entertainment and marketing medium, alongside other traditional communication methods. Handset manufacturers are also looking at developing distribution channels to meet this high demand and thus as seen in the report, eTailers are gaining significance where 29% of smartphone purchases in 2015 happened via e-commerce channels.