Posted by As consumers are spending an increasing amount of time on mobile phones, advertisers are paying close attention. With mobile phones now occupying nearly three and a half hours of an average adult’s time every day in the US, the marketing potential is turning heads.
Consumers aren’t just reading their phones. They’re also buying. Mobile commerce sales are predicted to surpass $470 billion in 2023, which is up 13.2% over last year. How can advertisers tap into this lucrative market? Here are seven trends experts predict we’ll see for the mobile advertising industry in 2023.
Mobile augmented reality (AR) will grow in spite of recession concerns.
A whopping $194 billion is predicted in mobile ad spend this year across the US, after already taking into account factors affecting an economic slowdown. Mobile AR advertising itself is slated to grow from $4.1 billion last year to nearly $10 billion by 2026, according to Artillery Intelligence. Much of this trend will be driven by social media and gaming.
QR-launched AR will rejuvenate out-of-home (OOH) advertising.
The use of QR codes continues to rise in popularity, and is expected to exceed 94 million users in 2023. QR goes hand-in-hand with OOH advertising, providing a more dynamic experience for consumers and making tracking a cinch for advertisers. US out-of-home advertising budgets should see an increase of 6% this year, reaching $9.77 billion in ad spend.
Advertisers will spend more in iOS when Google Ad IDs (GAIDs) are no longer in play.
While Google is keeping their Android ad tool until at least 2024, “iOS has always had higher rates attracting more dollars in the US,” according to analyst Yory Wurmser. When GAIDs fall into lesser use, “it may revert to the point where iOS prices are higher and attracting more dollars,” Wurmser predicts.
Expect current economic conditions to supercharge measurement innovation – in the short term.
As James Carville famously said, “It’s the economy, stupid.” The economy will continue to be a driving force influencing not just decisions on advertising mix, but corollary factors like how to measure effectiveness. “If [macroeconomic factors] go downhill,” said Wurmser, “advertisers will demand more accountability. And the way to prove the accountability of advertising is through measurement.” So sharpen those measuring sticks.
Apple will face more blowback from its App Store policies. To find out how this and other trends are expected to play out, keep reading here.