Are you a marketer who is trying to capture the attention of the young Indian consumer – the millennial? You may have to look beyond traditional marketing channels and consider mobile advertising as a potential option. Look around you. The millennials are almost always on their smartphones. Every free second is taken up various activities on smartphones.Candy companies such as Wrigleys have become the unlikely victims of growth of mobile technology as consumers prefer to engage with their phones rather than be idle and do impulsive shopping at check-out counters in retail stores, a significant sales contributor for Wrigleys. Accept it or not, we are transitioning into a time that is witnessing an extraordinary change in consumer behavior. And India is not lagging. Given below are five reasons why you should consider including mobile advertising in your marketing strategy for India:
1. India has now become the third-largest smartphone market in the world
According to a 2013 report by Canalys, India is now the third-largest smartphone market in the world after China and the United States. In Q2 2013, smartphone shipments to India grew by a staggering 129% to reach 9 million.
“India is a market in transition, moving from feature phones to smart phones, and is a market that offers huge potential as hundreds of millions of users have yet to upgrade their feature phones. Domestic vendors, such as Micromax and Karbonn, are capitalizing on the popularity of their feature phones and are quicker to respond to local market demands, hence their current success” – Jessica Kwee, Canalys Analyst
2. In India, 86 million users access Internet using mobile devices
In 2013, financial services firm Avendus reported that India has over 160 million Internet users. Of this, 86 million users access Internet using their mobile devices and 22 million users have 3G connections.
3. Indian consumers are more active on their smartphones than users in penetrated markets
According to a joint study by Yahoo-Mindshare in 2013, Indian smartphone owners use their devices more actively than users in a more penetrated market such as Hong Kong. Indians use their smartphones to conduct 13.7 daily activities compared to only 9.8 activities by users in Hong Kong.
“Given the mobile growth in India, the potential for brands to engage with their audiences via smart devices is tremendous. To unlock this, marketers need to think beyond mobile as a reach extender” – David Jeffs, Head of Insights, India & South-East Asia at Yahoo, 2013
4. Urban Indians spend less than 20% of their smartphone usage time on calls and messaging
According to the Smartphone Incidence Study 2013, calls and messages account for less than 1/5th of time spent on smartphones in India. Smartphones in India are primarily being used for listening to music, watching viideos on the go, gaming, taking and sharing photos, and searching for information.
“Smart devices have transformed consumer behaviour and how they interact with brands. India is poised to grow its smart device penetration at a dramatic pace, which means marketers need to prepare for their brands to harness this opportunity” – Deepika Nikhilender, Leader, Business Planning, Mindshare Asia Pacific, 2013.
5. Indian mobile Advertising Market Potential Estimated at INR 2,800 Cr (~ USD 457 MM) by 2016
According to Avendus, mobile advertising revenues in India were estimated to be around INR 180 Cr in 2012. This is expected to grow to a staggering INR 2,800 Cr by 2016. Currently, the mobile ad networks space in India is dominated by Google, InMobi, Komli, and Vserv.
“A key limitation for mobile advertising in India is the lack of awareness among advertisers” – Avendus, 2013
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