Monday, November 23, 2015

Mobile Advertising: Trends & Challenges

With mobile marketing becoming the clear trend nowadays, companies are leveraging the app-install ads implemented by Facebook, Google and Twitter. The three Internet behemoths are also developing ever more sophisticated products like video ads and deep linking ads that target customers who haven’t visited a certain app in awhile. Twitter has also launched Twitter Moments to allow advertisers build deeper promotions through providing immersive experiences. Pinterest launched its Promoted Pins, which introduced shopping and Cinematic Pins to better showcase the product and to lead customers directly to the product landing page.

Google has also initiated the universal app campaign, which are generated on the fly by the system to fit the most relevant ad inventory and placements available. The system rotates the ads and adjusts bids automatically to get the most downloads for the app. For example, according to Google, if one line of text is performing better than another, the system will show the better text more often.

Nevertheless, ad spend by mobile developers is also skyrocketing. According to industry experts, the combination of new entrants to the space, and increasing budgets have driven overall spending up nearly four times what it was one year ago. A large portion of the expense is allocated to mobile Web designs and building responsive websites so that these brands are getting a version of the Web that is built to the expectation of mobile devices so as to boost the ad engagement.  The cost of an ad has also been driven up by private marketplaces, which are alternatives to open bidding and priced the ad five to six times higher in terms of cost per thousand impressions. Google ads are markedly less expensive than that of Facebook, as publishers pay $1 to $3 for a thousand impressions, compared with $9 to $12 CPMs on Facebook. On Facebook, the cost per install is sometimes more than $15, which is a reflection of oversaturated app-install advertising on Facebook.

In addition, viewability on mobile is also an issue. The most prevalent trend is placing the ads high up on the page, where readers are likely to see them on first glance. Others are touting the fixed bottom navigation areas that have become more popular owing to the new scrolling paradigms. According to industry experts, despite high impression generated by high-top advertisements, readers would be diverted away from the website after seeing the ad, making it undesirable for the publisher. Another problem is that if a mobile user doesn’t load at a lightning-fast speed, users will not end up viewing it, as the average mobile user starts scrolling on a website 13 seconds after content begins loading, compared with 24 seconds for that of desktop readers.


Publishers and mobile developers also summarize key factors that make an ad stand out. Brands have discovered that the better the targeting, the more valuable would the ad impression be. Moreover, ads that are more artistically creative and deploy new format have kept performing well in terms of impression and generated revenue. Advertisers also realize that banner-based ads don’t translate to mobile, and that native and personalized content are much more effective.


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