The always-on smartphone world creates a unique chance for businesses to connect with prospects and consumers in a direct and intimate way. When it's done well, mobile advertising targets the right person, in the right place, at the right time with the right offer. This contextually relevant scenario is both highly attractive and likely to turn engagement into action, evidenced by 78% of Chinese respondents in PwC's survey stating they would be likely to click on an ad if the content was relevant to them.
PwC research report
As data usage on smartphones continues to outpace voice usage, mobile phones and tablets continue to find new ways to integrate into users’ lives. They are one of the few devices that have entered the “inner circle of trust”. As such, these devices are a treasure trove for marketers as they contain thousands of data points for advertisers including everything from your locations, likes, thoughts, and more. Apps and even the mobile platforms themselves are collecting huge amounts of customer preference data. Mobile devices are also a strong advertisement delivery mechanism as they enable marketers to send a targeted ad directly to an individual, versus broadcasting to the masses, which may or may not increase the ad’s relevancy and efficacy.
Many consumers expect advertisers to not only provide relevant ads, but also ones that meet demands around nature and frequency so that they are delivered at the right time of day on the right day(s) of the week, and preferably with a coupon delivered over a banner ad. To get this right, there are many hurdles for advertisers to jump. Advertising on mobile devices is still a new frontier, but given the unique capabilities that mobile advertising can provide, marketers and advertisers must quickly learn how to best take advantage of the medium within the boundaries of consumers’ willingness and attitudes towards receiving mobile ads.
PwC Consumer Intelligence Series
As more brand dollars move to digital, both publishers and media buyers look to programmatic technology to lock in advertising agreements in advance, in addition to traditional direct sales channels. To help you stay on top of the latest trends in programmatic buying, eMarketer has curated a roundup of some of our latest coverage on the subject, including statistics, insights and interviews.
Mobile tops the list of tech and media topics that have gained the marketplace’s attention and investment over the past few years. This focus is being sustained by hardware innovation, rising smartphone penetration and the resulting mobile Web and app usage.
A key part of this discussion is monetization. Though paid apps have succeeded in some areas such as games or niche vertical interest, ad support is a more broadly fitting choice for lots of app developers and publishers, due to mobile users’ high commercial intent.
But a challenge has arisen in the slower than expected advertiser adoption. Put another way, advertiser adoption hasn’t caught up with mobile usage. Mobile holds a 12 percent share of U.S. consumers’ media time, but only a 3 percent share of ad revenue.
The good news is that a few factors will counter this supply/demand imbalance that’s mitigating sell-side monetization. For one, mobile’s high engagement relative to other ad supported media will create premium inventory that boosts advertiser demand and rates.
One of the main sources of this premium lift will be location targeted ads. Their value will be a function of congruence with user intent, such as 50 percent of Google mobile searches that seek local information. Location targeted ad performance will also drive this.
Such performance deltas for mobile ads that carry various flavors of location relevance are already evident from data shared by mobile ad companies cited in this report. Advertiser demand will follow in an inevitable process of market evolution towards higher ROI.
Mobile local campaign tactics won’t just involve where the ads show up and what they contain, but how they’re measured. A feedback loop of ad effectiveness drives towards one of the most important areas of mobile ad innovation in the coming years: Attribution.
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