Technology has evolved and so has the world of advertising. Mobile advertising is the buzzword of the day. It is definitely one of the most effective means to reach out to your potential customers.
IAB’s internet advertising revenue report for the year 2018 states that “Advertising delivered on a mobile device now makes up 65.1% of total internet advertising revenues”.
And according to IABs 2020 report, mobile advertising revenues increased by 24% between the years 2018 and 2019.
In a consumer world that’s always online, a good advertising campaign definitely needs to focus on its mobile phone using audience. However, mobile advertising is a completely new field that differs a lot from the traditional concepts of ad making.
Present-day marketers use a wide range of sophisticated options to create user-friendly mobile ads to boost a brand name and generate higher revenues.
The article here answers all your questions regarding mobile advertising, its benefits, different types, steps involved in designing a successful campaign, strategies and the costs involved.
Table of Content
About Mobile Advertising and its Benefits
Mobile ads are the advertising world’s answer to a consumer world that is hooked on to their phone screens or mobile gadgets. In layman terms, it is the type of product/services advertisement technique that you see on your smartphones.
Mobile phone advertising can occur as text-based ads, banner advertisements, videos or even as mobile games.
Considering the average screen size of mobiles, the advertisements are optimized to fit into a smaller display area.
Mobile advertising is essentially a part of mobile marketing using traditional techniques and strategies to collect data. This may include consumer profiles, demographics, habits, preferences, etc.
So instead of going out and reaching your markets on the physical level (posters, banners), mobile advertising makes use of the popularity of smartphone devices.
The invention of mobile advertising has been revolutionary when it comes to marketing campaigns. Its reported benefits include a surge in customer engagement rates, cost-effectiveness, personalized consumer relationships, and social media friendliness.
In a world that has more number of mobile subscriptions than the human population, it would be ridiculous not to base your marketing game around it!
Current mobile advertising trends
Seeing an online promotional advertisement pop up while you’re using an online app is a common occurrence. Consumers expect these and their responses to the advertisements are growing in numbers.
Interactive Advertising Bureau states that mobile advertising has experienced a growth surge of 65% in 2014 and 24% by the year 2019, which has since been growing by the day.
A report sourced from emarketer says “In 2019, worldwide digital ad spending will rise by 17.6% to $333.25 billion. That means that, for the first time, digital will account for roughly half of the global ad market.”
Another IAB Internet Advertising Revenue Report, 2018 for the US states that “Mobiles contribute the maximum to the digital marketing’s steady growth and account for approximately two-thirds (65%) of 2018’s internet ad revenues. Mobile advertising revenue grew up to 40% from 2017 to 2018.”
Similarly, according to this article on Ad Age, “digital advertising had yet another record-breaking year in 2017, as ad revenue totaled $88 billion, a 21 percent upswing from 2016”.
Mobile advertising basics- Things you need to know
So what are the basics that you need to know before you step into the amazing, yet ever-changing world of mobile advertising?
Here’s a list of some basics that you need to learn:
- The terminologies used:
programmatic advertising is the new trend in the world of advertising. Everything is changing to digital. Following are some key terms being used:
Demand Side Platform (DSP): It is also known as “buy-side optimizer” or “buy-side platform”. DSP is a digital standard that works for centralized and aggregated media buying from multiple sources. This also includes real-time bidding capabilities of all sources.
Real-Time Bidding (RTB): This method is specifically used for buying and selling ad inventories that are present in real-time (live).
Ad exchange: These are the sales channels for purchasing and selling online media advertising inventories. This is the modern version of the traditional manual price negotiation techniques used for bidding.
Ad network: This refers to the organizations that outsource sales services for publishers. Their key tasks include sifting through the ad inventories from various sources and generate buying opportunities for advertisers.
Supply Side Platform (SSP): These are exchange places for publishers who want to sell their ad inventory to advertisers. They are also commonly referred to as “sell-side optimizer”, inventory aggregator” or “yield optimizer”.
Agency Trading Desk (ATD): As the name suggests, this refers to a department of the advertising agency that facilitates the ad inventory purchases by the clients.
- The mobile platforms used:
Understanding the mobile platforms that can be used to target your ads is a crucial aspect. Following are the two types of mobile platforms being used:
Mobile Web: This refers to the pages that are arranged to fit the mobile screen sizes (both smartphones and tablets). Since more users prefer to access their mobile devices rather than desktops, it is easier to reach a higher number of target audience. Modern ad contents like video ads and other rich media versions help in offering enhanced ad experience.
In- App: In today’s world, a discussion on mobile advertising is impossible without mobile apps. App advertising is one of the most sought after strategies used by marketers to promote their products. All you need to do is to pick the right apps and put up the right creative within it.
Apps are easy to download and navigate and are highly preferred by present-day mobile users. In-App advertisements are those that are visible within these apps. These are specifically designed to target user behavior and preferences and to give them the best browsing experience.
Ad formats (as discussed in the subsequent sections) rely on the platform being chosen.
- The currency terminology being used:
Mobile ad campaign payments can be made using several different ways. These include:
- Pay Per Click(PPC)- Also known as Cost per Click (CPC) in some countries. In simple terms, payments are made based on the number of times the ad is clicked.
- Cost per Impression (CPI)-Payments are made for every new ad view.
- Cost per Action (CPA)- Payments are made for every completed action.
- Cost per View (CPV)- Payments are made every time an advertisement pop up.
- Click-Through Rate (CTR)- refers to the number of clicks on a particular link.
- Cost per Mile (CPM)- Payments for every thousand ad views.
- Conversion Rate (CR)- Percentage of users taking the desired action
- Install Rate (IR)- Percentage of users installing an app.
Advantages of mobile advertising
What makes mobile advertising so effective?
Markets are constantly expanding. New business ventures and entrepreneurs are looking for options to leverage this amazing opportunity. Following are some of the key benefits of mobile advertising:
- Accessible: Social media platforms and mobile apps have become the modern terminology for communication. People spend a considerable amount of time updating their apps. It is hence important to deliver your campaign directly to your consumers.And what better way to do so than to reach out to your consumers on their cell phones. The accessibility benefits of mobile advertising ensure that that your ad campaigns get delivered instantly and accessed easily by the users.
- Geo-targeting: Since people keep their cell phones with them when they travel, marketers and advertisers can make use of the knowledge to deliver location-based, geo-targeted advertisements. Location-based mobile advertising is a great way to analyze consumer preferences and habits like shopping favorites, areas frequented, etc. For example, when a shopper visiting X locality gets an advertisement of a sale happening in a store there, the chances of visiting the store are likely to increase.
- Understanding consumer habits: Mobile devices have a unique ID. Using the id’s, offline as well as online habits of the target consumers can easily be studied. This, in turn, helps in devising a sound marketing campaign.
- Cost efficiency: Mobile advertising is one of the most cost-efficient ways to reach your target customers. In fact, the overall cost of designing a mobile advertising campaign is a small fraction of a TV or radio ad. Being budget-friendly means that marketers can afford to increase the frequency of sending messages or even target new customers repeatedly.
- Personalized advertising: Mobile advertisements have the unique advantage of tailoring the mobile user’s preference in marketing campaigns. Customers have the option to follow, like or even send in their own suggestions to their favorite brands through social platforms.
- Plethora of creative options: Since mobile advertising integrates well with social media channels, websites, and apps, it is possible to enhance the creativity levels of the advertisements. With a strong visual appeal and instant outreach, mobile ads ensure a stronger impression on the target audience.
- Fraud resistance: Compared to desktop advertising, fraud detection is easy with mobile devices. It is easy to verify the “Click to calls” and usage.
- Instant results: Cell phone users keep their devices with them wherever they go. The chances of seeing an ad on a mobile set are more as compared to desktop or other traditional advertising methods. Additionally, it is also easy to track user responses instantly.
- Higher conversion rates: Smartphone-based ads, clicks, spend and conversions report the highest growth rate when compared to desktops or even tablets.
- Interactive: People like to take part in advertisements that come along with contests, games, etc. The use of gamification and other features makes mobile advertising more interactive.
Mobile advertising vs mobile marketing
While mobile advertising is synonymous to mobile marketing, they are different in terms of applications. Mobile marketing is an umbrella term that includes mobile advertising.
Mobile marketing makes use of multiple services and data information like location based services, buyer persona and their habits, user preferences, etc.
Therefore, certain mobile ads will appear only when a user enters a certain geo marked boundary.
Mobile ad placement on the other hand works through programmatic bidding where marketers/advertisers are involved in real time bidding to place an ad on a mobile device. This includes processes known as demand side platforms (DSP) which enables advertisers to measure their performance. Performance optimization is done using KPI (Key performance indicators) like CPC, CPA, etc.
Types of Mobile Advertising
Mobile ads can have different forms and platforms. While marketers use each of the below-mentioned mobile advertising solutions, the suitability to a sector and the baseline strategy decides the choice. Various social media platforms work differently when it comes to mobile advertising techniques and efforts.
What follows is to consider the different types of mobile advertising options available and consider them with respect to the goal of the advertisement.
Following is a list of the most commonly used mobile advertising formats.
1. Banner advertising
Banner ads are the oldest version of mobile ads. The origin of banner advertising can be traced back to web marketing. However, in a world that is more in love with interactive rich media ads, banner advertisements still manage to survive and be popular.
Banner ads are often seen embedded in a web host page or an app. In most instances, these are depicted by images (or graphics with text) that are designed to grab the attention of consumers. The idea is to pull the customers from the host page to the advertiser’s page and later convert it into a paying client.
The use of vibrant colors, quality graphics, and “Call to Action” tabs make banner ads very appealing and popular. The better the visual appeal, the higher is the customer reaction.
While banner ads are very cost-efficient and are still being widely used, the world is quickly moving to other modern options like gamification ads and video ads (described below).
That said, banner ads are very much alive and in demand.
2. Video advertising
A report from the Business Insider says that social video advertising spend doubled up in 2017 (expectedly) to over $4 billion.
Those FIGURES alone say a lot!
Video advertising is a very powerful communication tool to get a company it’s desired conversion figures.
Product videos are extremely helpful for customers when they are in a decision-making process. Videos can effectively deliver a complete visual experience, which helps the users to get a closer feel of the products in question
A big percentage of consumers watch videos on their mobile phones. In fact, watching video on a phone has more impact and gets more conversions as compared to watching video ads on TV!
Ad makers and marketers use various techniques to display video ads on a mobile device. Options like optimizing a YouTube ad, Shopping ads that get displayed underneath the main video, sponsored advertisements that come at the beginning of video content are used.
Some important tips for creating mobile video advertisements that generate good ROI are:
- Keep it SIMPLE
- Use your CREATIVITY
- Keep it short and CRISP
- The audio and visuals are NOT TOO LOUD
- Display a CALL TO ACTION
3. Full-screen or interstitial mobile advertising
Interstitial advertisements are the full-screen videos or graphics that are usually placed at app transition points.
Say, for example, you are playing a video game. You’ve just managed to clear Level 1 and are ready to get your next game level loaded. That’s when you observe an image or a short video ad coming up. These are interstitial mobile ads.
Interstitial ads get high click percentages compared to banner ads. However, the rule that goes with interstitial ads is to display them ONLY at the interval points. The ads appear naturally between the content transition points so as not to interrupt the user activity flow.
Ad types may include text, graphics or rich media. Finally, users usually get a choice of closing the advertisement by clicking the X button (usually on the top right).
Since these ads take up the full screen or the majority of the screen space, they work well to grab consumer attention.
4. Native app-based advertising
Native ads are similar to the banners but are not conveyed directly, so as to be treated as advertisement content. The ads are displayed within the app’s natural environment of the mobile and hence blend in with the flow.
Since they’re embedded as a part of the mobile environment, they offer an advantage. They can not be blocked.
So, you get your advertisement displayed to targeted users without actually causing forced interruptions. The appearance, buttons, and design features are similar to other elements of the app.
Some key tips for creating high quality native mobile ads include adding the following key ingredients:
- Crisp description
- Brand logo or name
A popular example of native mobile advertising is Facebook ads. Users scroll through their page/news feed and yet get to see ads embedded in between two news pieces.
5. Gamified mobile advertising
Gamified options are a type of interactive video or rich media advertisements. These are a favorite with savvy marketers who want to create interactive channels to advertise.
Games are a natural way to generate user interest. Gaming mobile advertisements work great when marketing apps. For example, if the app is about problem-solving or finding directions on a map, short and quick gaming videos that let the users do test it works great as an advertisement.
Gaming mobile advertising is a great way to engage customers at a basic level. These also work well to generate user data like consumer profiles, etc. Since game based learning is now being considered a highly evolved means of education by all sectors, gamification based ads create high conversion rates since they manage to capture user attention.
A potential consumer involved in a challenging game is more likely to spend 10 or more seconds on the advertisement.
KEY NOTE: IAB’S internet advertising revenue reports state that all digital ad formats (mobile plus desktop) have shown the following growth in the year 2018:
- Search: Total search ad revenue is up 19% to $22.8 billion
- Banner: Total banner advertising is up 27% to $15.7 billion
- Video: Total video advertising revenue is up 35% to $7 billion
Key Steps for Developing a Mobile Advertising Campaign
An online mobile marketing campaign uses a certain set of key elements. Following is a list of factors that add up to create a successful mobile advertising campaign :
1. Establish the objectives
Like any other marketing campaign, it is important to define objectives for the mobile advertising campaign as a first step. Defining objectives or measurable goals helps you understand your results and take valuable lessons from them.
A mobile advertising campaign is created in the first place to raise awareness about the brand and increase sales numbers. It also helps drive the web traffic to the company’s landing page. A good number of companies create specific mobile advertisements to promote a special deal or a newly launched product.
Irrespective of the objective, getting clarity on the goals helps in defining the metrics that are required to achieve the targets.
Some examples of objectives for a mobile advertising campaign could be:
- Raise brand awareness
- Generate “x” number of registrations
- Get “x” number of mobile opt-ins
- Get web traffic to the landing site
- Getting “x” number of people for video gameplay
- Increase sales to “x” figure
- Add a targeted number of new clients per month
- Advertise a promotional offer
2. Choosing your target audience
Adding more contacts or clients is one of the key reasons to start a mobile promotion event in the first place.
But just adding up the audience is not enough. You want to target a specific group of audience to be on top of your advertising game. It all starts with identifying who you want to target.
Once the target audience is identified, it is important to study their preferences and other details like what they need, what they prefer, how they react, etc.
Identifying the target demographic areas can be done through telephonic surveys, text messages, and social media.
Most consumers react better to mobile advertisements that are customized for their locality. Targeting localized customers helps generate better conversions.
Studying a target group of potential consumers also helps to understand their mobile environments.
It is crucial to factor the viewing mindset of users.
They typically have smaller screen sizes than conventional desktops, and hence need better clarity with the texts, visuals, and graphics. Also, remember that mobile users usually have shorter attention spans. The advertisements should hence be sufficiently catchy to grab their attention.
Various online tools like Google Analytics can be used to gather target audience profiles.
3. Identifying the type of mobile ad you need
Determining the type of ad campaign that is best suited for your product or services needs careful considerations. Ad campaigns could be created to simply generate higher sales or with the sole purpose of creating brand awareness.
As mentioned in the earlier sections of the article, various types of mobile advertising formats are used by marketers. A campaign could be more suited to video ads or could work well with photo advertisements or banner ads.
If you’re looking at generating a higher number of clicks, a regular banner advertisement can be used. When the target is to get high sales figures, creating a Video or YouTube-based ad that comes with a CTA link works well. Ensure that the CTA link directs consumers to the landing page that talks about your product.
Native ads work great when you need to promote an app-based product. A user when viewing the ad in the middle of their mobile activity will automatically get excited about installing the ad (of course, the services provided by the app should be fairly attractive).
Various other mobile-based games or apps that offer a video game prefer to use a gamification based mobile advertisement. As mentioned earlier, gamification ads create a high level of excitability and engagement amongst the users.
While it is true that some mobile advertising formats utilize lesser resources than others, it is important to consider the purpose and the target audience when choosing a type. Video ads, for example, are costly to create but deliver higher lead generation and stronger brand awareness.
4. Decide the ad campaign length
Figuring out the type of mobile ad campaign that you want to run and the numbers that you’re looking to generate is the first step. Once you’ve done that, it boils down to planning the actual campaign.
Start with planning out the length of your ad campaign. This again depends on factors like:
- Types of actions that the users will need to take (single click, multiple steps, etc)
- User group preferences as observed from previously generated data.
- Budget availability
If a single click directs your user straight to the landing page for purchase, your mobile ad length will obviously be short. On the other hand, a campaign that targets both brand awareness and sales generation will need to run through multiple steps and will hence be lengthy.
The length of the mobile ad campaign is also a factor that contributes to the overall cost, resources and time.
5. Consider the targeted devices
Ad content varies based on the devices that are targeted. Different types of contents are used for different devices.
Smartphones usually have small screen sizes and need more focused content with minimal interruptions. Tablets and iPads, on the other hand, require high-quality creatives.
Understanding the device preference of your target customers is hence important. We actually keep coming back to the realization that understanding your user groups is extremely crucial.
Even within a device, the time spent by a user on apps or mobile web needs to be considered. Preferences differ based on region and country.
6. Ad designing
It finally comes down to designing the mobile advertisement, complete with graphics and content.
General guidelines to keep in mind while creating a mobile ad are available all over the internet. However, it is important to remember that mobile advertisements are created with the primary objective of getting the viewer’s attention.
Focus on using high-quality graphics, especially when the ads are being created for iPad and tablets. Remember that viewers using a slightly larger screen expect better quality visuals than those who view the ads on their cell phones.
It pays to spend time and resources on high-quality graphics when considering certain ad types like banner ads and interstitial ads.
When it comes to mobile advertisements, content works like nothing else. Design alone may not do the job.
Make sure that your content copy is compelling enough to persuade consumers to buy your products. Ad content needs to be crisp and clear about the product/service along with an attention-grabbing call to action tabs.
If you can keep your content engaging and interactive, even better.
Ensure that the number of touchpoints is kept minimal. A user may not like the idea of devoting too much time and attention to complete the CTA after seeing the ad. Keeping them away from their mobile work for too long can create negative reviews.
Finally, as mentioned earlier in the article, keep your focus limited to a targeted set of audience. Let your users get a sense that the mobile advertisement understands their needs and is created for them. User data like demographics, location, behavior pattern, shopping choices, social media preferences can help creating user-targeted ads.
7. Data management, reporting, and analysis
Gathering user information is easy. However, it is crucial to respect the privacy of your users and consider the safety of their data. Managing the data that is collected during mobile promotions is important.
The database collected during mobile campaigns is huge. It is much more than what you can capture through online desktop promotions. Consider the following points for effective data management:
- What is the type of user data available with you?
- Owner information (it is advisable that you take ownership of the data from your technology provider)
- How will the mobile audience be segmented?
- How are the tracking links set up?
Reporting and analysis are again an important aspect of a mobile advertising campaign. it includes scrutinizing the following:
- User funnels and the goals that you want your consumers to follow
- User behavioral patterns
- User’s engagement time
- User visit frequency
- Campaign’s overall contribution to the overall objective
8. Ad testing
So your ad is prepared and you’re ready to launch?
Now is the time to test the conversion rates. Measurements and metrics can be collected for a small period, like a month to see how the mobile ad is performing. An assessment at this stage will tell you how the advertisement is performing in terms of conversions and sales.
Other testing variables include user flow, responses, load testing, data captured, etc.
Mobile campaigns are usually tracked using two key attribution methodologies:
- Unique Identified matching
- Device Fingerprinting
Once you have some preliminary measurements, you can take time to improve your mobile ad.
Key Mobile Ad Strategies That Work
As mentioned earlier in the article, the 2019 mobile ad spending is predicted to account for approximately half of the global advertising market.
While the rapid growth of the industry is exciting, it has not been easy for brands to get their mobile ad campaign to work as they want. Since the medium is fairly new, it is not always easy to determine the strategies and tactics that work the best.
A successful mobile advertising strategy varies from one business to the other. However, considering the general trends, the following are some key mobile ad strategies that have shown great results for various brands.
1. Incorporate modern versions of mobile ads
Mobile banner ads are the conventionally used ones by various global brands. While they still hold their popularity, it is time to think beyond banners. After all, “Banner ad blindness” is not an unknown term anymore!
Consumers have shorter attention spans and limited availability of time to view the ad content being thrown in their devices.
A CTR analysis given by COULL tells gives us the following figures in terms of “click through rates” for various ad formats:
- Display ads 0.35%
- Native ads 1.37%
- Video 11.8%
While display advertisements like banner ads can be highly effective when directed to the right consumer groups at the right time, it is definitely time to include modern versions like native and video ads in your mobile ads spend.
2. Think Local
The share of local ad spend is projected to jump in the year 2020.
Ever wondered the reason behind the rapid growth?
Mobile ads are one of the best channels for businesses that are localized. With the possibilities of geotargeting, mobile ads are now being delivered to local consumers.
In some ways, it helps the user feel interested and connected to the advertisement. When a brand decides to create local mobile advertisements (both, platform-agnostic and device-specific), the results are often highly effective.
3. Make use of the targeting options
It is important to target your mobile ads to improve overall effectiveness.
As an ad creator or a mobile ad marketer, it is important to remember that modern-day consumers have a low tolerance for ads that do not serve value. Make use of the capabilities of current mobile devices (like GPS) to create more targeting options.
Targeting options like consumer demographics, time targeting, behavior targeting etc are very effective when you’re focused on improving your response rates. Ensure that you use as many of these targeting options available.
Modern options like micro-location targeting and micro time targeting are also being used by mobile advertisers to generate better and rapid results.
4. Use Google and Facebook as your starting point
With the availability of multiple channels, it is often an overwhelming decision to make a choice on the most suitable ones for your mobile ad spend.
Mobile Advertising platforms like Google and Facebook offer huge advantages. They allow you to manage multiple mobile ad offerings at the same place. The platforms have been expanding their mobile ad offerings in the last few years. Things like Facebook’s Audience Network and Google Mobile App can be considered.
This doesn’t necessarily mean that your mobile ad spend ends here. There are various other hubs that you must seriously consider as you grow in business and get a better understanding of the mobile advertising world.
5. Reduce your ad loading time
Even while fetching awesome conversions, mobile ads often end up being overlooked by user groups. In fact, certain studies report that a big percentage of mobile users prefer to block their mobile ads due to interruptions caused by the long loading time.
We’ve all faced it. Slow-loading ads that take forever to come through.
Not just are these ads blocked by user groups, they often end up creating a negative brand experience.
Ensure that you build lightweight ads to keep them user-friendly. If possible, do not include heavy images or hosted video content. Ad serving processes like “polite load” help by loading a lighter file while the main content gets uploaded.
Finally, try not to use incompatible technologies for ad serving.
– Remember, mobile ads need to meet certain pre-defined objectives. Ensure that your ads are as informative as possible. Adding phone numbers, email ids is a great way to do that. Consumers who like your add look for a quick way to get more information. Keep your “tap to call” button visible and attractive.
Other techniques like providing incentives through ads work great when you want to attract more users and generate leads. Everyone loves free stuff. A discount coupon, a gift card or any other incentive format are good ways to do so.
For more comprehensive information on mobile strategies, consider reading our article on “7 Mobile Advertising Strategies for Better Conversions”.
Mobile Advertising Platforms
Following are some of the popular mobile ad platforms used by marketers:
1. Google Mobile Ads
Google ads can be viewed on both desktop and mobile devices. If you’re using display ads, there is an option for device targeting which allows the advertiser to select only smartphone and tablet users.
The platform allows you to publish ads on browsers, on Google search results, and within apps.
2. Facebook and Instagram Mobile Ads
These are two of the most popular social media platforms which is why they launched Audience Network which is an ad platform.
It offers the advertisers to choose from multiple ad types like Native ads, Interstitial ads, Banner ads, In-stream video ads, Rewarded ads.
Instagram too is a mobile first platform that is built for the smartphone audience.
3. Bing Ads
Although Bing ads come second to Google, they cost about 70% less in terms of advertising budget. In addition, they provide the advertisers more control on location selection, language, campaign scheduling, etc.
This platform was acquired by Google in 2009 and is a wonderful option for companies looking to place their ads within a mobile app. The platform provides a choice from Banner ads, video ads, native ads, and interstitial ads.
This mobile video ad network is used by popular brands like Hilton Hotels, Farmville, Adidas, etc. The advertisers can put up video ads within an app usage. It is therefore a very popular option amongst mobile game developers.
An addition feature of this platform is that it can be used to micro target the audience based on the type of smartphone they use (Android or IOS), the device (iPad, iPhone, Tablet, etc), connection type (4G, Wifi), geography, demographics, and even the content.
Various other popular platforms like TubeMogul, Airpush, Snapchat, Unity, Apple Search Ads, etc are used by advertisers based on their specific requirements and advertising budget.
Mobile Advertising Costs
So, how do we get to decide a reasonable ad budget?
How much does mobile advertising cost?
Determining the right spend is definitely not as simple as it sounds. According to a report by emarketer for mobile internet ad spending worldwide, it has grown from 19.20 billion dollars in 2013 to 195.55 billion dollars in 2019! That’s gigantic!
Tracking mobile ad expenditures is done via methods like CPS, CPA, and CPM.
Cost per Click
Advertising networks usually ask advertisers to bid for their CPC. A smaller niche usually receives a higher price for a single click.
Cost per Action
Ad formats like banner ads or video ads do not really focus on clicks to get conversions. Sometimes, companies build their campaigns with objectives like “x” number of app instalments, “x” number of sign-ups, etc. These is the CPA.
This mode of payment is also dependent on the niche and the quality of the ad created. CPA is the total ad campaign cost divided by the number of actions received.
Cost per mile OR Cost per thousand impressions
This type of payment mode allows to bid for impressions, so they pay for the number of users viewing the mobile ad, and not for the clicks or conversions.
Not all advertisements are focused on getting immediate conversions or actions. A mobile ad may sometimes solely target brand awareness. These are the instances where CPM or cost per mile modes work best.
Mobile advertising companies factor their costs vary based on the industry, ad delivery channel, targeted location, size of user group being targeted, mobile device (operating system) and other factors.
Following are some of the crucial data points for mobile advertising costs:
- 2017 global mobile advertising spend- 107$
- 2017- Google generates 32% of total US mobile ad revenue
- Average CPC for the year 2016- $0.27 (ranging between $ 0.03 in Bulgaria to $0.51 in Denmark)
- Average iOs eCPM- $5
- Average Android eCPM- $2
- Average Banner ad format CPM- $1
- Average Interstitial Ad format CPM -$3.5
- Average Video Ad format CPM -$3
- Average Native Ad format CPM- $10
Examples of Companies with Successful Mobile Advertising Campaigns
According to IAB’S internet advertising revenue reports, mobile has grown to account for nearly two-thirds of digital ad revenue for the year 2018. Additionally, approximately 71% of the time spent online tends to be on a mobile device.
While the list of brands that have reaped the benefits of mobile advertising is endless, following are five top brands with highly successful mobile advertising campaigns:
- Samsung: Samsungs interactive ads which included a personalized real-time battery identification mobile ad unit, when they first introduced Galaxy S6 was a huge success. It allowed viewers to experience the product before they could decide to purchase it. An interstitial ad was also created to demonstrate the smartphone’s fast charging feature. Since users were actually looking for this feature, the targeted mobile advertisements along with the catchy CTA button that led the users to experience the product created a greate demo ad.
- Nissan: The video ad showcasing Nissan’s Rogue SUV was an instant hit. The ad featured a fight between the SUV and a gang of snowmen. Users could tap on their touchscreens to participate while learning about the features of the automobile.
- Snickers: Remember how you wanted to grab that chocolate bar every time you heard their audio ad that said: “you’re not YOU when you’re hungry”? Snickers targeted a group of users who were actually listening to a different music genre that was not their usual choice. Just as they were disinterestedly doing that, the audio ad was delivered to pinpointed users who were then taken to Snickers branded playlist called “The Hunger List”.
- Netflix: Yes, the world’s leading entertainment service provider created a realistic advertisement experience to capture the interest of the users. The ad used the fear experience that people had while watching their horror paranoia series called Black Mirror. User mobile screens changed to black which resembled a broken mirror. The ad grabbed immediate attention, to say the least!
- Pond’s: The super interactive mobile advertisement created by Pond’s managed to grab high user engagement time. What did they do? They targeted a specific group of customers who spent a large percentage of their time on mobile phones and cameras.
The ad created a personalized event where the front-facing cameras of their smartphones were used. As the user looked into their device, the camera tracked facial features and detected acne-prone areas of the skin. Bang! Their new Acne treatment product was a hit.
2020 is fast approaching.
You can no longer solely rely on the quality of your products to win over new customers. Customer experience is important too. With the growth of mobile advertising, business owners need to now focus on mobile customer experience.
Mobile advertising is the future of the advertising industry. It is the quickest way to reach the Gen Z audience to sell your brand or product. With news of 5G being introduced to the markets soon, the internet speed will go zooming. Video ads, gamification and reality ads will get easier to deliver.
Finally, Virtual Reality and Augmented Reality are expected to play a significant role in the world of mobile advertising.