Mobile Marketing Market Size, Share & Trends Analysis Report By Enterprise Size (Large Enterprises, Small & Medium Enterprises), By Solution, By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global mobile marketing market size to be valued at USD 337.8 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 22.9% during the forecast period. Mobile marketing is a multi-channel digital promotional activity to reach the target audience through their mobile devices, such as smartphones and tablets, via email, SMS and MMS, social media, websites, and apps. Based on research conducted by the Global System for Mobile Communications Association (GSMA) research, approximately 75% of the total number of mobile users would be using smartphones by the end of 2025. The rapidly growing adoption of smartphones and tablets coupled with robust internet penetration in developing countries, such as China and India would significantly drive the market.

Mobile marketing is one of the key digital marketing strategies adopted by organizations to promote their products and services. It also helps organizations eliminate paper costs and denotes a fast and convenient means to interact with target customers. It enables the integration of new, innovative methods of advertisement with the same marketing strategies to increase their impact and approachability in terms of target users. Several surveys conducted by many companies denote that more than 90% of the youth use smartphones to access information or content. Approximately 49% of smartphone owners use mobile internet to access search engines. Such factors are anticipated to create growth opportunities for the key players operating in the market for mobile marketing.

Geofencing is a technological service that uses Radio Frequency Identification (RFID) and Global Positioning System (GPS) to define geographical boundaries. Organizations procure data from mobile applications and analyze them to understand consumer preferences. Companies use this data to advertise relevant products and services to their target customers. Geofencing for mobile applications is a convenient way for mobile application marketers to take advantage of Location-based Marketing (LBM). It helps organization design effective campaign strategies and to drive sales and audience engagement.

Rising adoption of geofencing across various industries is expected to significantly drive the market over the forecast period. Additionally, proliferation of Artificial Intelligence (AI) and Augmented Reality (AR) in retail sector to understand consumer behavior and to send notifications accordingly is projected to propel the growth. Rapid increase in viewers accessing Over the Top (OTT) content is anticipated to create significant opportunities for digital enterprises over the forthcoming years. Increasing adoption of ad-block software by smartphone users to avoid unwanted ads is the key factor restraining growth. Furthermore, stringent government regulations related to mobile ads coupled with privacy and security concerns are anticipated to hamper the growth.

Mobile Marketing Market Trends

Mobile marketing can enhance brand value and desire for goods or services by connecting with more customers instantly at any stage in the consumer journey. These benefits are expected to drive the market during the forecast period. According to a Statista report on global mobile website traffic, mobiles alone generated traffic of around 54.4% of the overall global website traffic in 2021.

Moreover, according to a Global System for Mobile Communications Association (GSMA) research in 2021, approximately 4.2 billion people had mobile internet globally. Given the limited financial resources and infrastructure, many evolving digital markets bypassed the desktop internet era entirely and shifted directly to mobile broadband via mobile devices. Such elements are poised to drive demand for the market during the projection period.

Over the assessment years, the rising demand for analyzing the performance of marketing campaigns in real-time is expected to create opportunities for market growth globally. However, a shortage of skilled individuals to plan, evaluate, disseminate, and execute mobile marketing strategies is projected to limit market growth to some extent.

Enterprise Size Insights

The large enterprise segment captured approximately 61% of the market share in 2019 owing to the rapidly growing adoption of mobile marketing strategies by large organizations across various industries. Large retail companies are adopting new technologies such as AI and AR to enhance the visual presentation of advertisements, which in turn improves viewer engagement. The proliferation of smartphones along with inclination of consumers towards smartphones is positively influencing the growth.

Rise in the number of small and medium enterprises (SMEs) has led to intense competition. The companies are adopting various marketing strategies to reach the target audience. They are opting for mobile marketing as the fastest way for communicating with their customers. Mobile marketing helps SMEs create brand awareness and thus encourages customer loyalty along with growth in sales. Start-ups are making significant investments in digital marketing to create consumer awareness regarding products and services. Hence, the rapid rise in the number of start-ups in developing countries coupled with increasing investments in digital marketing is anticipated to drive the segment growth.

Solution Insights

In 2019, the mobile web segment accounted for a market share of approximately 22%, owing to a large number of smartphone users frequently accessing mobile search engines. According to GSMA, in 2018, the global adoption of smartphones was 60% and is anticipated to grow by 79% by 2025. Furthermore, high investments by business enterprises to promote their products through mobile search engines would drive the segment growth over the forecast period.

Quick-Response codes (QR codes) marketing is more affordable than other mobile marketing solutions owing to the various benefits. QR codes are images that can be decoded through special built in readers in tablets and smartphones. These are two-dimensional codes that contains a lot information than traditional bar codes. QR codes are easily trackable, appeal to people’s curiosity, and can be found in many places such as social media apps and newspapers. This factor is expected to fuel growth of the segment growth over the forecast period.

End-Use Insights

In 2019, the retail industry captured nearly 22% of market share in terms of revenue, attributed to an increasing number of e-commerce retailers coupled with rapidly evolving consumer buying preferences toward e-commerce owing to its numerous benefits, such as ease of delivery and the availability of a wide range of products. Retailers are looking for advanced marketing solutions to handle the changing consumer behavior. Moreover, mobile marketing plays a vital role in assisting retailers in adjusting according to this changed consumer behavior.

The retail segment is anticipated to expand at a high CAGR over the forecast period, owing to the rising implementation of location-based services in the industry. Growing adoption of in-app marketing in banks to provide tailored products and service-related content directly to consumers’ devices is expected to boost growth of the BFSI segment. The travel segment is anticipated to witness significant growth over the forecast period, owing to the number of people using smartphones for travel reservations. Thus, ease of booking tickets online through mobile phones and the inclination of consumers toward online portals for bookings is anticipated to drive the segment growth in near future.

Regional Insights

In 2019, North America market for mobile marketing held a revenue share of nearly 40%, attributed to presence of a large number of mobile marketing service providers coupled with the highest percentage of smartphone penetration (approximately 77% of the total population) in the U.S. Furthermore, the robust increase in the use of OTT content is expected to fuel the regional growth.

Significantly rising number of smartphone users, high investment in telecom network development, and awareness regarding mobile marketing among enterprises are some of the factors projected to substantially drive the growth of the Latin America region. Nevertheless, Asia Pacific is expected to witness significant growth over the forecast period. The growing number of mobile internet users in the region is expected to bode well for regional growth. According to GSMA, in 2018, there were 1.9 billion internet users in Asia Pacific and this number is anticipated to reach 2.7 billion by 2025.

Key Companies & Market Share Insights

Key players are focusing on collaborating with OTT content providers, which in turn would help increase their regional presence. They particularly focus on entering into mergers and acquisitions and joint ventures and collaborations to enhance their market presence.

For instance, in April 2018, InMobi made a partnership with Airtel to target OTT premium customers in the Indian market during the cricket season. With 350+ TV channels, 10,000+ movies, TV shows, and originals, in addition to collaborations with Amazon Prime, ErosNow, Hotstar, Fastfilmz, Alt Balaji, and Hooq, among others. Airtel TV was one of the highest downloaded Video OTT apps in India in the first two months of 2018. Key market players focus on acquisitions to diversify their businesses as well as to enhance market presence. For instance, Singapore Telecommunications Ltd. acquired Amobee Inc. to diversify its business to include mobile marketing and increase its overall market presence. Some of the prominent players in the mobile marketing market include:

• IBM Corporation

• Alphabet Inc. (Google)

• InMobi

• Millennial Media

• Marketo (Adobe Inc.)

• Amobee Inc. (Singapore Telecommunications Ltd)

• Flurry Inc.

• Salesforce.com Inc.

• Oracle Corp.

• Chartboost Inc.

• SAS Institute Inc.

Recent Developments

• In March 2023, Ozone, UK’s leading digital advertising platform, announced partnership with Mail Metro Media, one of the UK’s leading newsbrand publishers to its sell multimedia mobile marketing solutions directly to agencies and online brands.

• In February 2023, InMobi, an Indian mobile advertising technology company partnered with Point Pickup, a last-mile retail delivery services provider for retail media advertising. This partnership will provide Point Pickup’s grocery store partners with product development and advertising solutions to maximize its media revenue.

Mobile Marketing Market Report Scope

Global Mobile Marketing Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global mobile marketing market report on the basis of enterprise size, solution, end use, and region:

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)

  • Large Enterprises

  • Small & Medium Enterprises

• Solution Outlook (Revenue, USD Million, 2016 - 2027)

  • Mobile Web

  • SMS

  • Location-Based Marketing

  • In-App Messages

  • Push Notifications

  • QR Codes

  • MMS

  • Others

• End-Use Outlook (Revenue, USD Million, 2016 - 2027)

  • Retail

  • Media & Entertainment

  • Travel

  • Automotive

  • Healthcare

  • IT & Telecom

  • BFSI

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)