Mobile advertising is taking off because people spend more time on mobile platforms. The number one activity people do on mobile is arguably social applications. More and more people spend time on social applications on mobile platforms. The trend explains why there is high level of funding activity by venture funds in the space. TapCommerce just raised $10.5 million in Series A round.
TapCommerce aims to increase effectiveness of mobile advertising by targeting and re-targeting customers based on "very large amounts of data coupled with sophisticated statistical analysis." Advertiser wants to know the intent and likelihood of purchase to reach the most likely customers with advertisement. The problem lies in figuring out the intent. Search is the gold standard in customers' expressing intent. Advertising on mobile and social applications have harder time to understand the consumer intents.
The harder to predict nature meant that businesses are turning to analytical tools to dissect correlations and relationships using larger amount of consumer behavior data collected via various commerce site actions.
The reigning king of social network, Facebook, is developing more targeting and engagement methods. Instead of driving just installs, Facebook allows publishers to do call-to-action advertisement as well. User has the highest trust level for ads that appear native. Hence the new expansion allows the action from facebook advertisement to navigate to other native apps for action.
One can argue that switching to mobile advertising is simply chasing where customers' eyeballs. The use of big data analytics is yet to be proven to be more effective as e-commerce platforms collect more and more customer behavior data.
Inspiration:
1. http://techcrunch.com/2013/10/01/facebook-mobile-app-ads-calls-to-action/
2. http://techcrunch.com/2013/11/21/tapcommerce-series-a/
3. http://www.businessinsider.com/native-mobile-ads-dominate-social-media-2013-11
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