With advancement in technologies, smartphones have already made a profound impact on our day-to-day related activities. While India is the fastest growing economy in Asia in terms of mobile shipments, at the same time, the number of activities supported by this single device have also grown multi-fold. “Anytime anywhere” connect (advanced communications), Shopping (online commerce), financial transactions (payment gateways), networking (social or not) & information consumption (mobile ready content) are some real life activities, carried over smoothly on this device on a daily basis.
According to the Ericsson Consumer report, “Indian users spend over 3 hours on an average each day on their smartphones with approx. one-third of the time on mobile apps; a growth rate of 63 per cent in app usage by Indians over the last 2 years”. The increased proliferation of smartphones among millions of users in India has ushered new opportunities in the space of mobile advertising. Indian users as well as businesses have already accepted this wave of acceleration with a lot of enthusiasm and this has resulted in higher mobile-ad engagement as well as monetization of revenues. The exemplary achievements of next generation Indian companies like Inmobi, Vizury, Komli Media, Adiquity etc., in the mobile advertising space is a testimony to this phenomenal shift in the entire advertising industry.
More recently, this segment has gained deep focus from internet and eCommerce companies, who are considerably increasing their budgets on advertising and ready to invest more in these new technologies. The ecommerce giant, Flipkart, has recently announced its new plans about selling advertising via its platform and has also acquired an ad technology company Adiquity from Bangalore. The recent talks around 2 more acquisitions in this space are enough to bring more scale to this growing market.
Snapdeal, an Indian online retailer, is in talks to acquire Komli Media, the ad technology company for about $300 million. At the same time, the U.S. based internet behemoth, Google, has recently initiated a discussion with InMobi (one of India’s earliest start-up in this space) to strengthen its advertising business across mobile devices. The value of the deal, although, not yet finalized, are expected to cross $2 billion.
India has already witnessed some eye-catching acquisitions in the mobile space by Global companies. In the beginning of the year, Twitter acquired Zip-Dial, an Indian mobile marketing start-up for $30 million to strengthen its capabilities in the mobile-ad segment. In 2013, social media giant Facebook had acquired Little Eye Labs, a Bangalore-based start-up, specialised in mobile data analytics for an undisclosed amount and marked its first acquisition in India.