Mobile communication usage has increased considerably since the onset of the COVID-19 pandemic. Furthermore, internet penetration is at an all-time high. Consequently, spending on mobile advertising has increased, and analysts expect the mobile advertising market to grow even more in the coming years. Indeed, given the sector’s growth prospects, Wall Street analysts see a more than 50% upside in mobile advertising stocks Digital Turbine (NASDAQ:APPS) and Phunware (PHUN). Read on.Online engagement has increased significantly since the start of the COVID-19 pandemic period because people have been spending more time at home, working remotely. Internet penetration is at an all-time high. The International Telecommunication Union (ITU) reported solid global growth in internet usage. According to the organization, the estimated number of people who have used the internet surged to 4.9 billion in 2021.
Mobile phone usage has also increased. The total number of mobile phone subscriptions crossed eight billion for the first time in 2019 and reached 8.6 billion this year. This has heightened the prominence of mobile advertising, with companies devoting increasingly large budgets to it. Spending on mobile advertising rose 17% versus 2020 and is expected to surpass $339 billion by 2023.
Furthermore, the global mobile advertising market is expected to grow from $96.46 billion in 2021 to $782.12 billion in 2028, at a 34.8% CAGR. Given this backdrop, Wall Street analysts expect mobile advertising stocks Digital Turbine, Inc. (APPS) and Phunware, Inc. (PHUN) to rally by more than 50% in price in the near term.