The mobile industry is climbing at a considerable clip. Here’s a look at key mobile web investing facts.
Mobile device technology has transformed countless industries in recent years, and the ability to communicate instantly has had an unprecedented effect on business.
Smartphones have evolved quickly over the last decade or so, and more people are turning to handheld devices instead of their computers as a way of accessing the internet.
The market has grown so much that in 2019, Pew Research Center reported that 5 billion people globally owned a mobile device. In late 2016, mobile web browsing surpassed desktop browsing for the first time.
The International Data Corporation forecasts that global smartphone sales will decline by 11.9 percent year-over-year in 2020 “as the macroeconomic impact of the COVID-19 pandemic continues to affect consumer spending.” However, growth in this sector is expected to return in the first quarter of 2021.
Total global mobile data traffic hit an estimated 33 exabytes (EB) per month by the end of 2019, according to the Ericsson Mobility Report, and is projected to reach 164 EB per month in 2025.
Here the Investing News Network breaks down a few basic mobile web investing facts to consider before diving into this exciting and dynamic space.
Mobile web investing facts: What is the mobile web?
The mobile web relates to browser-based internet services that are accessed via handheld devices.
As PC Magazine defines it, the mobile web refers to “accessing the Web from smartphones and tablets.” However, just like the evolution of technology, that definition has also expanded. PC Magazine further defines the mobile web as encompassing all apps that are downloaded via a web server. Once installed, many apps still require accessing web servers for updates and other data as required.
That means if you’ve ever used your phone to access a web browser such as Google, logged onto the Facebook (NASDAQ:FB) app, checked your email, done online banking, used a streaming service like Netflix (NASDAQ:NFLX) or even played a game, then you’re familiar with the mobile web to an extent.
The upshot is that the mobile web encompasses a wide range of uses that are no longer restricted to simply surfing the internet by way of a handheld device.
Mobile web investing facts: Market growth
eMarketer estimates that mobile accounts for more than two-thirds of digital ad spending in the US, and digital ad spending is expected to grow to US$134.66 billion in 2020.
While the COVID-19 pandemic has led to cuts in global ad spending across market segments, mobile app ad spending has weathered the storm more than most and is projected to see growth in 2020.
Mobile web investing facts: How to invest
It’s clear that the mobile web is here to stay as smartphones and other devices become ubiquitous — so how can investors enter the space and use mobile web investing to strengthen their portfolios?
There are a number of options and investment products that can provide exposure to the mobile web, but two popular methods are exchange-traded funds (ETFs) and stocks.
ETFs are an attractive option for those who are interested in an industry as a whole because they provide exposure to a basket of companies rather than requiring investors to choose a specific stock. They typically have low fees and can serve a wide variety of investment objectives.
According to ETFdb.com, there are a select few overall internet-based ETFs that can provide exposure to the mobile web. Those include the First Trust Dow Jones Internet Index Fund (ARCA:FDN), the KraneShares CSI China Internet ETF (ARCA:KWEB), the PowerShares NASDAQ Internet Portfolio ETF (NASDAQ:PNQI) and the Emerging Markets Internet & eCommerce ETF (ARCA:EMQQ).
For those looking for a more specific mobile web ETF, there is also the the PureFunds Video Game Tech ETF (ARCA:GAMR), which is the first of its kind.
Of course, for those who are more interested in going all-in on a company, investing in stocks is generally the way to go. When it comes to the mobile web, there are a wide variety of stocks from which to choose, such as those in apps, video games and social media.
This is an updated version of an article first published on the Investing News Network in 2017.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.