India’s Mobile Ad Market is the land of opportunity….if you can avoid the land mines

Mobile advertising in India saw tremendous growth in 2017 with estimations of an 85% increase by eMarketer. And with forecasts of a 75% additional increase for 2018, advertisers envision a bright future. However, success depends heavily on their ability to navigate the Advertising landmines that hide below the surface and threaten advertiser’s ROI.

The uptake in mobile advertising in India is largely the result of the increased internet penetration that has been fueled by telecom operators offering competitively priced connections and consumers upgrading to smartphones. Following along those advancement there has been an upswing in mobile entertainment, M-commerce and applications including games, news, utilities and more.

We’ve taken a look at 3 of the top spenders in the market and the issues related to each.

Mobile VAS

“The Mobile Value Added Services Market revenue in India is estimated to reach $23.8 billion by the end of 2020*.” The significant growth of the mobile subscriber base, especially in rural and urban regions is the major factor that is boosting the MVAS growth. However during 2017, malicious practise caused an increase in ad fraud forcing carriers to tighten user billing flows, shutdown many traffic sources, and increase restrictions regarding subscription services.

The advertisers who take away the biggest pieces of the pie in 2018 will be focused on 3 things:

  • Applying transparent anti-fraud measures to ensure filtered/clean traffic
  • Controlling churn rates to avoid further restrictions with carriers
  • Creating unique content to add value to the subscriber bases

*Market Research Engine

App installs and Engagement

App insights company App Annie has claimed India has the second-largest number of mobile app downloads, overtaking the US and trailing only China. Additionally, App Annie sites 2017 has seen a 60% growth in number of app downloads globally, duplication of consumer spend and an increase of 30% in time spent on apps.

So what is being downloaded most in India? Reports show that communication apps are the leader with utilities, games and shopping also occupying top seats.

While all of this points to a market full of opportunity and increased revenues, India is high on the list of fraudulent app installs and high uninstall rates. With 17% of installs coming from bots in the region as well as a 32% fraud click rate according to marketing consultancy Tune, app developers need to take measures to diminish threat.

Ecommerce and lead generation

India occupies the 2nd position in the ranking of countries with the highest number of internet users, which makes it an attractive market for online marketers and ecommerce business owners.

Online retail in India is estimated to grow over 1,200% to $200 billion (Rs13,30,550 crore) by 2026, up from $15 billion in 2016, according to a recent report by financial services firm Morgan Stanley. Additionally direct response campaigns for gathering databases to increase sales conversions have now become an essential part of the marketing mix for growing businesses.

Although this presents a world of opportunity, there are innumerable factors to consider and technology applications that are must haves for entering the playing field. Campaign objectives affect which traffic sources to buy from, price points, attribution, and optimization strategies. External factors such as competitive pricing/offer, time of day, weather, etc can also affect media buys drastically. Technology to manage all of the factors in real-time is essential for achieving ROIS in this competitive space.

Help in detecting the mines…

Kimia is an online advertising tech group with more than 10 years of experience in mobile advertising. Through niche specific companies, we have applied specific technology and methodology to address the distinct needs and objectives across the online advertising ecosystem.

Mobile VAS players can take advantage of the premier optimization and anti-fraud technology from ArmorAds. Our ArmorAds Pro-Tech solution was built by expert engineers in VAS to protect against revenue loss and brand damage caused by fraudulent practices and provides filtered quality traffic to campaigns. Our local India office for more than 3.5 years has provided us with the leading campaigns from premium advertisers as well as local and international publishers providing safe large volume traffic sources.

App Installs and Monetization are the specialty of The Cactus Road. In-house technology using data mining and predictive modeling deliver audiences that covert, while protecting from fraud both pre and post install. Identification and analysis of big data in real-time allows fraudulent sources to be blocked from apps, as well as 3rd party partnerships with app fraud security partners.

Direct response, Lead Generation and branding clients can define their online media strategy, media planning and buying with Tidart. Tailor made algorithms are applied to each client to achieve maximum bid optimizations and ensure every cent invested achieves performance. In-house bot technology allows optimization based on external factors, compares performance and allows for thousands of adjustments of CPCs daily to reach objectives. Channels include: Facebook, Google, YouTube, Twitter, Linkedin, Remarketing, RTB and more.

Karen Ciulla Karen Ciulla
Global Business Developer & PR