Why Mobile Advertising is the Next Big Thing

Why Mobile Advertising is the Next Big Thing

For most of us, our smartphones are like another appendage. We can't imagine life without these pocket-sized devices that put the world at our fingertips. And with mobile usage continuing to grow, it's no surprise that mobile advertising is exploding.

Mobile ad spending first surpassed desktop ad spending in 2016. Since then, mobile has not only maintained its lead but has rapidly expanded its share of the digital advertising market.

Looking ahead to 2025, the upward trajectory continues. U.S. mobile ad spending is projected to reach $228 billion in 2025, up from $147 billion in 2023.

So why is mobile advertising set to dominate? Here are some key reasons:

We're Addicted to Our Phones

Let's face it — we love our phones. We carry them everywhere: at home, at work, in the car, out shopping, waiting in line, and yes, even in the bathroom!

In 2025, the average person spends nearly 4 hours a day on their mobile device, reflecting a steady increase in screen time over the past few years. On top of that, we now check our phones an average of 120 times a day, underscoring just how deeply integrated these devices have become in our daily lives.

With users constantly connected and engaged on mobile, it represents a massive opportunity for advertisers. Mobile allows for more personalised, targeted, and integrated campaigns that connect with consumers multiple times throughout the day.

Mobile Usage is Exploding

The numbers speak for themselves – mobile usage continues to grow at an astonishing rate:

• Over 7 billion people worldwide now own mobile phones—nearly 90% of the global population.
• More than 90% of our media time is spent on mobile devices, from streaming videos to browsing social media and news.
• Over 70% of online shopping searches are now done on smartphones, making mobile the go-to device for commerce.
• Messenger and social apps account for nearly 65% of time spent on mobile, with platforms like WhatsApp, Facebook, Instagram, and TikTok dominating user engagement.
• Google searches on mobile devices now surpass desktop searches in nearly every country worldwide, reflecting a truly mobile-first world.

The sectors seeing the biggest jumps? Retail, gaming, and financial services.

Retailers are pouring money into mobile because that's where shoppers are making decisions. Gaming companies know their audience lives on mobile. And financial services have realised that banking apps are prime real estate for targeted messaging.

Video formats are driving the highest growth across all categories. Users simply engage with video content more deeply than static images, and advertisers are following the engagement.

Location, Location, Location

One of the unique advantages of mobile advertising is the ability to target ads based on location. Location data allows advertisers to deliver contextual, personalised ads and offers to consumers on the go.

Some examples of location-based mobile advertising:

• Sending coupons to shoppers when they are near a store
• Displaying ads for restaurants when users are downtown during lunchtime
• Promoting an in-store sale to passersby
• Retargeting previous customers who are in the area

This allows brands to connect with users at the right time and place. Studies show that location-based mobile ads boost engagement by over 50%.

Optimising the In-the-Moment Experience

Mobile devices allow for real-time interactions and experiences with consumers. With mobile ads, brands can connect with users immediately when they are most receptive to engaging.

For example, mobile ads allow brands to:

• Send push notifications about breaking news or new content
• Trigger welcome messages when a user arrives at a location
• Prompt users to take action from an emailed newsletter or offer
• Deliver video ads while a user is playing a mobile game
• Engage users while they are browsing content and moving through the purchase funnel

This allows for greater personalisation and contextualisation of messaging based on real-time consumer habits and locations.

The Rise of App Advertising

As consumers spend more time in apps, in-app advertising is increasing. In-app ad spending is predicted to grow almost 2x as fast as overall mobile ad spending through 2025.

In-app ads allow highly engaging formats like interstitials, video ads, and rich media. Apps also provide a contained environment to measure ad results accurately.

Here are some key benefits of in-app mobile ads:

• Hyper-targeted based on user data like location, demographics, behaviour
• Often, non-skippable video ads that fully engage viewers
• Function offline once they are loaded into the app
• Allow re-engagement with app users to drive purchases or site visits

In-app ad spending will likely overtake browser ad spending in the next few years. This is a shift that brands need to take advantage of now.

The Rise of Mobile Video Advertising

Video ads are booming on mobile, and the numbers for 2025 are more impressive than ever.

Nearly 80% of smartphone users watch videos on their devices daily, with the average user spending over 6 hours consuming video content on mobile platforms.

A staggering 83% of all video views now happen on mobile devices. With video dominating engagement on platforms like TikTok, Instagram, YouTube, and Facebook, mobile video ads continue to expand rapidly, capturing attention and driving results for brands.

As short-form and live video content become even more popular, expect mobile video advertising to keep breaking records in reach and effectiveness.

Some unique benefits of mobile video ads:

• They are sight, sound and motion, capturing greater consumer attention
• Shorter ads fit better into scrolling on the mobile feed
• Calls to action can drive direct mobile conversions
• Interactive elements like 360 video provide greater immersion

Brands see much higher engagement rates with mobile video ads than with other formats. Expect brands to shift more of their video spend to mobile platforms and apps in the coming years.

Retargeting on the Go

Retargeting has become a significant component of digital advertising strategies. Mobile retargeting allows brands to continue engaging consumers on the go through relevant advertising across their days.

With mobile ads, brands can build integrated experiences by retargeting users across devices and channels. For example:

• A user views a product on your website at home
• Your brand then shows an ad for that product in a mobile game they play during their commute
• When they are browsing content on their phone in the evening, your brand displays a retargeting video ad for them

This creates a continuous, consistent experience that repeatedly exposes them to your brand and the product they showed interest in. Mobile retargeting ads have much higher CTR and conversion rates.

Voice-Activated Mobile Advertising

The way we interact with our phones is changing. Over half of smartphone users now engage with voice features monthly. This shift opens exciting new territory for advertisers.

Voice search patterns differ significantly from typed queries. People speak to their devices in more conversational, question-based language. “Where's the nearest coffee shop?” instead of “coffee shop near me.”

Smart brands are adapting their mobile strategies to accommodate this change. They're developing voice-optimised content that matches how people actually talk.

Voice commerce is taking off as well. Global voice shopping is projected to reach £80 billion by 2025. Consumers are getting comfortable purchasing products simply by speaking to their devices.

Here are ways advertisers are leveraging voice on mobile:

• Creating branded voice experiences through mobile assistants
• Optimising content for voice search questions
• Developing voice-interactive ads that respond to user commands
• Building voice apps that provide utility while subtly promoting products
• Using voice AI to personalise ad responses in real-time

The beauty of voice advertising is its seamless integration into daily life. Users don't need to stop what they're doing to engage with an ad. They can simply continue their conversation with their device.

Brands that ignore this shift risk missing out on an increasingly important channel. Those who master voice-first advertising will have a significant edge in capturing attention in an already crowded mobile landscape.

Bite-sized, Snackable Ads

We generally use our phones on the go and while multitasking. This means mobile ads need to convey messages quickly in a bite-sized format.

Short, simple, visually engaging mobile ads work well by communicating a single message. Some practical formats include:

• Simple animated GIFs or cinemagraphs
• Short video ads between 6 – 15 seconds
• Single-image ads with minimal text overlay
• Clean display ads tailored to mobile

Playable Ads

Playable ads continue outperforming traditional formats in 2025, with engagement rates now averaging 35–45%. As users increasingly expect hands-on experiences before downloading apps or games, this format remains a top performer for driving quality installs and brand recall.

Rewarded Video Ads

Rewarded video ads maintain exceptionally high completion rates, with recent reports showing completion rates consistently above 92% in mobile games. The value exchange—viewing an advertisement for in-game rewards—ensures users are attentive and receptive, resulting in stronger brand affinity.

Interactive Rich Media Ads

Interactive rich media ads now deliver 3–6 times more engagement than standard banner ads, according to 2025 benchmarks. Enhanced interactivity—such as product carousels, quizzes, and mini-games—turns passive viewers into active participants, significantly boosting click-through and conversion rates.

Augmented Reality (AR) Ads

AR ad campaigns have seen a further uptick in effectiveness. Studies in 2025 show AR ads deliver up to 80% higher memorability and conversion rates up to 2x higher than non-AR formats. The ability to visualise products in real-world settings continues to drive both engagement and purchase intent.

Streamlined Mobile Ads

Mobile-first, fast-loading ad formats are now essential. The latest data reveals that ads loading in under 2 seconds see 25% higher engagement and 18% lower bounce rates. Brands that craft concise, visually-grabbing messages for mobile feeds—delivering their core message in 2 seconds or less—see the strongest results.

Optimising for Mobile Commerce

As consumers get more comfortable making purchases from their phones, mobile commerce is multiplying. Mobile drives an increasing share of ecommerce transactions and sales.

Mobile ads that drive conversions are critical for brands to connect mobile audiences with transactions. Tactics like click-to-call ads or ads with direct links to transaction pages are effective ways to convert mobile users.

Seamless experiences like auto-filling payment information also help to reduce friction in mobile purchases. With mobile ecommerce growth accelerating, optimising ads to drive mobile transactions will become a bigger priority.

Leveraging Mobile Users as Brand Ambassadors

The most potent form of mobile advertising comes directly from customers themselves! Brands can leverage mobile users to spread the word as brand ambassadors organically.

For example, brands can encourage:

• User-generated content like posts, photos and videos of your product
• Sharing your content or promotions on social media
• Referrals through messaging or texts
• Reviews and ratings that lend credibility
• Check-ins that are shared when a user engages with your brand

The rise of ephemeral content on mobile stories has further amplified organic peer-to-peer marketing. This authentic, earned user content is hugely influential with mobile audiences.

Micro-Moments Mean Micro-Targeting

Mobile devices allow for almost constant consumer connectivity. This means brand moments and touchpoints are increasingly taking place in quick spurts throughout the day.

Google calls these “micro-moments” – the micro-moments throughout our day when we turn to our phones to take action, get information, buy something, or engage with a brand.

The mobile ads that will win in this environment are those that understand and connect with user intent in these quick moments. Brands must target consumers based on these real-time needs and contexts to help mobile users.

Understanding the mobile user journey will be critical in deploying hyper-targeted, intent-based mobile advertising campaigns.

The Rise of Mobile Programmatic Advertising

Programmatic ad buying is taking over the digital landscape. It uses automated systems and algorithms to buy and optimise real-time ads. Now, programmatic is expanding rapidly into mobile.

What are the benefits of mobile programmatic advertising?

• Real-time optimisation to target key audiences at the right time
• Drive higher ROI by only paying for conversions and desired actions
• Flexibility to adjust campaigns and increase budgets to better-performing placements
• More advanced targeting based on mobile data, like carrier and operating system
• Streamlined workflows and consolidated performance reporting

Brands that leverage programmatic techniques for their mobile ad buying will gain a performance edge. Look for programmatic to account for over 80% of mobile display ad budgets within the next several years.

Privacy-First Mobile Advertising

The mobile advertising landscape is undergoing a massive shift thanks to privacy changes. Apple's App Tracking Transparency and the phasing out of third-party cookies have forced advertisers to rethink their strategies.

Many brands are turning back to contextual advertising. Instead of tracking users across apps, they're focusing on the content users are currently engaging with. This approach feels less invasive while still delivering relevant ads.

First-party data has become golden. Brands with direct relationships with consumers have a huge advantage in this new privacy-focused world.

“Privacy sandboxes” are emerging as a compromise solution. These technologies allow some level of personalisation without exposing individual user data.

What does this look like in practice? Here are some privacy-first approaches gaining traction:

• Cohort-based targeting that groups similar users rather than tracking individuals
• On-device processing that keeps personal data on the user's phone
• Contextual AI that predicts interests based on current content, not past behaviour
• Permission-based marketing that offers clear value in exchange for data sharing
• Federated learning techniques that improve ad relevance without centralising data

The companies adapting fastest to these privacy changes are seeing less disruption to their campaigns. Those still relying on old tracking methods are struggling with rising acquisition costs.

The Need for Mobile Measurement

With users shifting their time and attention to mobile, brands must accurately measure mobile ad results to optimise effectively. This means implementing robust mobile attribution to understand:

• How mobile ads drive conversions across devices
• The influence mobile ads have on in-store sales
• What types of mobile ads perform best for your goals

With cross-device consumer journeys, mobile attribution must look beyond last-click models to measure influence across marketing channels. Mobile ad analytics are crucial to unlocking optimisation.

Brands must also measure real mobile KPIs like engagement rate, app installs and time spent rather than just clicks and impressions. Mobile offers unique insights – ensure you have the proper tools to access them!

Key Takeaways and Predictions for Mobile Advertising

Mobile advertising is genuinely taking off. As consumer behaviour shifts toward mobile, advertising budgets and tactics must follow suit. Here are some critical predictions for where mobile advertising is headed:

Total Mobile Ad Spending

• Global mobile ad spending is projected to reach $255 billion in 2025, surpassing previous forecasts.
• Mobile will account for over 75% of digital ad spending and approximately 31% of all global media.
• The U.S. remains the largest market, but growth is accelerating in Asia-Pacific and Latin America.

Video: The Fastest-Growing Mobile Ad Format

• Mobile video ad spending is expected to grow by over 60% from 2023 to 2025.
• Short-form video (including vertical and 6-second ads) is now the dominant format, with platforms like TikTok, Instagram Reels, and YouTube Shorts leading the charge.
• Video now represents over 40% of all mobile ad spend.

Location-Based Targeting Advances

• Addressable geotargeting has become even more precise in 2025, leveraging advanced GPS, beacons, 5G, and WiFi triangulation.
• Hyperlocal targeting enables real-time, contextually relevant offers, especially for retail, QSR, and event-based marketing.

Quick-Loading Branded Content Dominates

• 6-second video ads, single-image ads, and snackable content formats now account for most mobile brand campaigns.
• Quick-loading creative is essential: ads that load in under 2 seconds see the highest engagement and lowest abandonment rates.

Conversational Ads Go Mainstream

• Conversational ads (via chatbots, messaging apps, and interactive voice) are now a standard part of mobile strategies.
• AI-powered chatbots deliver personalised product recommendations, answer questions, and even complete transactions within the ad unit.
• Adoption is especially strong in retail, travel, and financial services.

Seamless In-App Experiences

• In-app ads frequently integrate payments, gamification, AR try-ons, and virtual goods.
• The line between content and commerce continues to blur, with shoppable ads and one-click checkout experiences becoming commonplace.

Programmatic Buying Dominates

• Over 86% of mobile display ads will be bought programmatically in 2025.
• AI and machine learning drive real-time optimisation, audience targeting, and creative personalisation, maximising ROI and minimising waste.

Privacy Changes Drive Innovation

• Ongoing privacy updates (including iOS 18 and Android Privacy Sandbox) have accelerated the shift to contextual targeting and first-party data strategies.
• Advertisers invest in privacy-safe measurement, consent management, and creative approaches that don’t rely on personal identifiers.

The mobile advertising landscape five years from now will look very different from today. Brands must start putting the pieces in place now to stay ahead of the curve and effectively engage the mobile consumers of the future.

Frequently Asked Questions About Mobile Advertising

Mobile advertising generates a lot of interest and questions from both brands and consumers. Here are answers to some of the top FAQs: