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What’s Hot, What’s Not: Mobile Advertising Trends in 2013!

Vikas Gulati spearheads business development at Vserv.mobi for South East Asia. Based in Singapore, he is responsible for driving key aspects of business – developers, publishers, and advertisers. He can be reached on Twitter, @vikasgulati. Disclosure: Vserv was a sponsor of our Bandung Hackathon event last year.

As consumers rapidly move to mobile, here are the top trends that will drive mobile advertising and take centre stage in 2013: 1. Android will continue to be the “mass market” smartphone momentum

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Everyday over 1.3 million Android devices are being activated, with most of them priced for the “mass market.” In 2013 Android will cross an install base of one billion users. That’s a truly massive number. Windows Phone 8 launched last October amid a lot of fanfare, and there are other new platforms in the news such as BB10, Ubuntu Mobile, and Tizen. But the Android/iOS duopoly will continue given the head start these two platforms have. We will see new operating systems and platforms chip away small shares but there is nothing on the radar that will make a significant dent in the ongoing Android momentum. Over the long term, it may be a different story but this is unlikely to change in 2013. 3. Freemium will flourish: In-app purchases and ad-based revenue in parallel

Developers using the classic in-app purchase models to monetize are seeing that only 10 percent of their app users make paid transactions. With an increasing number of app users coming from emerging markets, this conversion rate will drop even further. While emerging markets have a high mobile penetration, the GDP per capita is much lower and credit card penetration is only in single digits. Marketers are now realizing that mobile means ‘place-shifting’ purchases, i.e. purchase decisions are not happening at a physical store but in the hands of the mobile consumer. Combined with micro transaction capabilities of mobile, m-coupons can alter the pricing paradigm with hyper-segmented offers! As more and more consumers use their devices for making purchasing decisions they previously made offline, the lines between advertising, distribution, and transaction will blur.