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Buoyed by the upcoming festive season, E-commerce mobile ad spends to soar


Ecommerce mobile ad spendsWe are at the onset of this year's festive season in India. It is that time of the year when E-commerce brands go into an overdrive with marketing campaigns trying to woo customers with a bouquet of offers on their products and services. In fact according to a recent Mobile Ad Spends Report 2015, ad spends by Indian E-commerce companies during the festive season this year, are expected to increase by as much as 30% over the previous going from USD 150 million to USD 196 million.

On the other hand, the report predicts that overall ad spends on mobile in India will grow by up to 52% between 2014 and 2015 to reach close to USD 108 million. It validates the fact that mobile is increasingly becoming the focus for most companies to engage their consumers, because mobile is where their audience is today. Also, as smartphones can be leveraged to create more highly immersive, interactive and relevant consumer engagement experiences, mobile advertising will soon become the preferred way of marketing for companies in India.

This trend is strongly observed in case of E-commerce companies, whose audience is primarily mobile-first today. For a majority of these consumers, their E-commerce purchase journey, right from discovering to transacting takes place on a smartphone. At the end other, E-commerce companies such as Myntra have gone mobile-only with their services to tap into this growing mobile-first audience.

It is therefore only logical for E-commerce companies to focus their advertising efforts and spends on mobile. However, the festive season means an increase in consumer traffic. Consumers will shop more online and will be looking forward to the various festive season offers. There is tremendous opportunity for E-commerce companies to tap into this buyer intent.

Substantiating this belief are estimates from the report which suggest that E-commerce will account for close to 70% of all mobile ad spends in India during the festive season. So while E-commerce companies ramp up their ad spends during the festive season, we can expect a major chunk of these spends to be focused on mobile advertising this year.

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