It was way back in 2008 when Mary Meeker, an analyst at Kleiner Perkins Caufield Byers, made headlines with her statement “Mobile to overtake fixed internet access by 2014“. Now in the first quarter of 2015, we can confidently say we have come past the phase when a debate on whether mobile advertising is important or not made sense! Gartner reported in January 2015 that Global IT spend will grow by 2.4% making the number to $3.8 trillion by this year-end. Whatever landmarks are being predicted or reached, you cannot ignore the fact that mobile advertising is all set to rule this year.
Consumers expect to be able to call, text, be online- all the time and everywhere. The increased pressure and demand of being online throughout gave birth to Gogo’s in-flight texting and calling services on flight. Yes, flights are no more your break off from the super connected world you live in on the earth. Even at 30,000 FT above the ground, you can be connected.
These interactions on small scale results in a large amount of information for marketers to work with, like real-time data on browsing behaviours, geo-locations, mobile device usage, online purchase patterns, and much more. Nevertheless, will only compiling these data help? Will it make marketing better?
Why Mobile Advertising?
From Print to Web to mobiles, advertising has definitely come a long way. It was only sometime back when discussions on why an online presence is important for a business were a rage. Then suddenly, it is smartphones. Marketers moved from print to web, used big data to collect data, and then used analytics to predict customer behaviour. Now, with all these, marketers have shifted focus on engaging customers via mobiles. Here are some interesting findings on why mobile advertising needs immediate attention:
- RocketPost claims almost half of mobile searches convert into sales.
- Facebook had a user of 1.35 billion in the last quarter of 2014, as reported by Statista.
- Local mobile searches will exceed desktop searches, as reported by eMarketer.
- 2014 showed an overall increase of 82% in mobile transaction than already successful 2013. This trend will continue in 2015 as well. (As reported by Zanox Mobile Performance Barometer Report)
Mobile Advertising Trends to look forward to in 2015
ROI is the king
Big Data Analytics has opened up new research avenues for marketers. Collecting data on who is using an app, for what are they using it and which feature they are using most, has become easy. Atul Satija, VP and Managing Director of Global Revenue and Operations at Inmobi quoted in an interview with App Annie,
“Advertisers and ad tech companies are convinced that mobile will be, if not already is, the dominant platform for consumer engagement. Success in this space requires scale and critical mass on the one hand, and a comprehensive technology and platform offering on the other.”
Marketers can use this huge chunk of data to predict the market trends, understand customer insights and consequently optimize their spend on mobile advertising. The mobile advertising industry is now implementing highly optimized methods to generate more revenue for app developers, agencies, as well as publishers. Of all, mobile native ads promise the highest ROI.
It’s the era of Math Men
Advertising is now transitioning on to a mobile platform. As online advertising shifts its base, marketers will need to adopt automated buying approach to scale their business. Hence, introduction of mathmen, or in simpler terms, programmatic buying has to be initiated. This means that, campaigns will be based on algorithms, making them highly targeted. Although, it is widely accepted that programmatic buying is the next big thing, not many have adopted it. However, we can expect it to become a natural phenomenon so much that, you will not need to discuss about its existence, because you know it is there!
Native Advertising is the Way to Go
Delivering native ads programmatically is the new trend to look out for. Native ads mainly refer to ‘catch-all content’ which alludes to using content to initiate and retain customer engagement, and in the process gain their trust. Native ads can be anything- a tweet, a Facebook post or a full page advertisement in-between the Flipboard pages. The difference between display ads and native ads is, the latter speaks in terms of editorial content. Whatever be the matter, Ashu Garg Partner at Foundation Capital, says, “The line between content and advertising is completely disappearing”. This means that brands have more opportunity to build innumerable content pieces. International Advertising Bureau (IAB) has estimated the native ad industry was worth $331 million in 2014, and it is being predicted to emerge as a billion dollar opportunity for publishers in the near future.
Mobile Advertising is Mass Personalization
However much one debates, it is a fact that our smartphones are almost an extension of our personal lives. In order to engage customers via mobiles, it is essential to be relevant. Therefore, mobile advertising will mainly be about connecting with one person and doing it million times, instead of connecting with millions of people at one go!
Fraud Resistant Advertising
With the popularity comes the risk of faking. Ad fraud is a pressing issue at this moment. Therefore, we can expect many fraud resistant solutions to come up in this year. Only relying on mobile advertising is not enough, let’s see some actions roll out!
Mobile advertising will be in the headlines as it merges innovations that solve app-discovery challenges and high-end performance of advertisements. While people are shifting base to smartphones and tablets, so are the gen-next marketers!