In time for this year’s Mobile World Congress, the GSMA released an in-depth report about Mobile economy. The report gives insights supported by good-looking infographics, comparison and predictions in the mobile industry between 2014 and 2020. It offers a glimpse into the future and an opportunity for marketers to carefully plan their future strategies. In our post we highlight some key predictions that are relevant to the digital advertising industry.
- Video is a key driver of data traffic growth
Although network speed and reliability are priorities for many mobile customers, it is really apps and content that are driving traffic volumes, particularly mobile video apps. Consumers increase the number of videos they watch and upload. As we mentioned in our post, fast, uninterrupted experiences encourage people to increase their video usage. Marketers will need to fast-forward plans to boost mobile as part of their video strategy mainly because mobile video should be considered as a core part of a content marketing strategy.
- The Great Migration
Between 2013 and 2014 ‘low-end smartphones’ became the hot trend of the mobile industry. Flagship devices still got their spotlights but almost every major company introduced a lower cost version of their high end smartphone offerings. Or at least pretended to do so (remember iPhone5c?). According to GSMA’s report, by the end of 2014 only 40% of mobile users were connected to 3G or 4G networks. By 2020 this number will increase to 70% and that happens thanks to these low-end devices. The rise in the availability and affordability of smartphones, in addition to a significantly more extensive network coverage, will bring the mobile world to greater speed and reach. Consequently, this will give marketers access to new audiences and an extended geographical range for their products, in addition it will enable them to gather more relevant data.
- Going Local
Most popular apps, services and general mobile content are in English. This serves as a major barrier for consumers alongside data-heavy smartphone apps that are not compatible with low-end smartphones. The GSMA report indicates that “In order to reach the widest audience, content needs to be available on as many devices as possible in languages users understand, as well as being relevant to their local needs and interests”. As the world-wide effort to connect everyone to the internet will grow so will the usage of smartphones; as a result marketers, publishers and advertisers will have to focus more on efforts to reach global audiences by localizing content.
It is common knowledge that mobile keeps growing at fast pace, supporting that, the GSMA report draws a clear picture of where this growth leads. Smartphones set the tone in the mobile industry and by developing new technologies and entering lower socio-economic demographics the digital advertising industry will have access to more data and new marketing opportunities.
Read the full report here.
Boris Shurp is Marketing Executive at dmg