Mobile Advertising
By: Lucas D’Orazio
People today are more connected than ever before and can get information at the touch of a button by simply asking a device a question. This is very much so thanks to evolving technology and devices such as our cell phones. But as communication and technology evolves, something else also evolves with it in order to try and survive. You guessed it, advertisers trying to sell you their products! More and more advertisers are looking to mobile based ads to attract new customers and gain profits. “Advertising delivered on a mobile device now makes up 65.1% of total internet advertising revenues,” said the Interactive Advertising Bureau (IAB) in a 2018 advertising revenue report. The amount of mobile ads has only grown since then as it went up another 24% from 2018 to 2019.
So why are so many companies targeting mobile devices to market their advertisements on? One reason is the multitude of ways to format a mobile ad, from banners on a site, to video-advertising, to even interactive advertisements, often times used for games and things such as this. There are many different ways to format a mobile advertisement to market it to different groups of people in order to peak their interests. Whatever age group or demographic you are trying to target, there is a specific format that is best suited to attract their eyes and attention. Another reason so many companies advertise on mobile is the availability of the user’s location. Companies can geo-target different areas for a certain advertisement that will attract those in that area most affectively. They can also see where someone likes to shop perhaps, or what places they have been and tailor advertisements to these preferences or experiences in order to prompt a return and loyalty from a customer. This goes hand in hand with understanding a customers habits. Companies can look at data from a mobile device and see what routines someone has in their day, or what they enjoy doing, and target similar activities or products in order to peak someone’s interest. Companies also like mobile advertising for the economic side of it as well. Mobile ads are much more cost effective as CPV (cost per visit) advertising, companies are able to be charged for an advertisement only when a mobile ad impression results in an in-store visit from a customer. This also takes much of the guess work out of the effectiveness of advertising, seeing exactly how much business a specific advertisement drove in for a company. There is also a Cost per Click cost basis and a Cost per Impressions cost basis. Cost per impressions gives a company an accurate number of people who saw their advertisement and allows them to pay the right price for the reach their ad has. Imagine you have a rising coffee grounds company and you are thinking of buying a TV advertisement. This type of ad has a set price before it is even aired. You, can’t be promised that X amount of people will be watching TV at that time, other than an estimate based on past viewings of a program or station. Okay, so maybe you rather buy a billboard instead of a TV commercial. You can’t be positive that the same amount of people will drive past this billboard and see your advertisement, but again you have to pay in advance before knowing the exact impact of this advertisement investment. This guesswork and possibility of overpaying for an advertisement can be eliminated with these techniques for buying and paying for an advertisement to get your brand to your potential customers. Mobile advertising is the most diverse, most cost affective, and overall most reliable way for a business to reach it’s potential customers, and this is why we are seeing an increase in the amount of annual spending on digital and, more specifically, mobile advertising.
Sources
https://www.mobileads.com/blog/mobile-advertising
https://www.groundtruth.com/insight/5-reasons-why-mobile-advertising-is-important/
https://www.marketingdive.com/ex/mobilemarketer/cms/opinion/columns/4755.html