A recent WSJ article (http://online.wsj.com/news/articles/SB10001424052702304384104579143983665807984) indicates that the rise of mobile phones are are actually helping Google rather than hurting them. The theory was that mobile advertisements were not as successful in gaining users to click on the ads and move them away from their main viewing page. Hence, the number of ad revenues would contract rather than grow. However, even though the amount of paid clicks decreased overall from last year, the actual number of clicks rose due to significant increases in ad exposure from mobile and tablet usage. Google actually saw a 26% surge in paid clicks from last year, as more and more people are using phones and tablets to search online.
This brings up two main points. First, mobile ads seem to work and it's not cannibalizing the ad market as originally thought. This is huge for companies like Google, Facebook, and soon to IPO-Twitter. Now Twitter can even use Google's case study as even more justification for a fairly high valuation. I can see reverberating effects with the other companies as they continue to convince businesses and advertisers on the possibility of mobile advertising. This is different than what was once a discussion about whether or not mobile advertising was even sustainable.
Secondly, this means advertisers need to start thinking more seriously and strategically towards advertising on smaller and more complicated platforms such as tablets and both the Andriod & iOS. Mobile advertisements are a pain. They require smaller ad copy and multiple backend coding to fit on different versions of Andriods. This is enough pain to justify not doing mobile advertising at all. However, with this new case study, it seems like people need to get serious about mobile--whether they like to or not.
This brings up two main points. First, mobile ads seem to work and it's not cannibalizing the ad market as originally thought. This is huge for companies like Google, Facebook, and soon to IPO-Twitter. Now Twitter can even use Google's case study as even more justification for a fairly high valuation. I can see reverberating effects with the other companies as they continue to convince businesses and advertisers on the possibility of mobile advertising. This is different than what was once a discussion about whether or not mobile advertising was even sustainable.
Secondly, this means advertisers need to start thinking more seriously and strategically towards advertising on smaller and more complicated platforms such as tablets and both the Andriod & iOS. Mobile advertisements are a pain. They require smaller ad copy and multiple backend coding to fit on different versions of Andriods. This is enough pain to justify not doing mobile advertising at all. However, with this new case study, it seems like people need to get serious about mobile--whether they like to or not.
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