Mobile programmatic advertising is still favored by advertisers despite the weak global macro economy. Review the evolution of the programmatic advertising ecosystem, explore core concepts, and present predictions for 2023.
Mobile continues unabated
Despite the global macroeconomic situation, consumers' increasing reliance on mobile devices makes mobile programmatic advertising a more efficient way to advertise. According to data.ai, spending on mobile apps in global advertising budgets grew 14% to $336 billion in 2022 and is expected to continue growing to $362 billion in 2023. Consumers are spending a record amount of time on mobile apps, which is driving a boom in mobile advertising.
World-class mobile advertising market
Source data.ai
The mobile advertising market has seen rapid growth over the past few years. The United States remains the world's largest mobile advertising market, with $165 billion spent in 2022, followed by China. Europe has emerged as one of the most dynamic markets in the global digital advertising market, with mobile AD spending expected to account for 53% of European digital AD spending by 2025. Asia Pacific is the fastest growing market for mobile advertising, with Japan in particular being one of the most mature AD markets with mobile AD spending set to reach 1.6 trillion yen in 2024. However, the mobile advertising market is also facing the challenge of the privacy revolution, and the changing privacy environment will make data privacy a key focus, requiring the rational use of technology to address privacy concerns.
The current programmatic advertising ecology
Programmatic advertising is the process of automating the buying and selling of mobile AD traffic, which enables advertisers to target audiences more precisely, improve the efficiency of AD delivery, and deliver stronger marketing performance. While programmatic advertising has faced a variety of challenges over the past few years, such as the economic downturn, uncertainty, and changes in privacy regulations, it has also spawned innovations, one of which is improving retention of high-quality users by personalizing their purchase journey. In 2023, advertisers' marketing budgets will be more skewed toward re-marketing ads to increase app engagement and retain high lifecycle value users. Data will play a key role in helping to understand user characteristics and needs, perform precise user segmentation, and create engaging advertising.
In summary, despite global macroeconomic challenges, mobile programmatic advertising remains popular and shows great potential in continuous development and innovation. In the future, data and technology will continue to shape the advertising industry, providing app marketers with new opportunities and tools to achieve better advertising performance.
