Assessing the Real Value of Mobile Ads

October 1st, 2009 Posted in Mobile Commerce

The online marketing community has been abuzz with excitement over the huge new opportunity that lies within mobile ads. However, mobile ads have yet to deliver on revenue predictions.

So, it’s time to go beyond the hype of mobile advertising.

Are mobile ads just another over-hyped advertising opportunity that will never fully develop, or a misunderstood medium that has yet to be properly utilized?



“The online marketing community has been abuzz with excitement over the huge new opportunity that lies within mobile ads.”

In this article:


Beyond the Hype

In order to determine the true value of mobile ads in the current marketing climate, the platform itself must be understood.

Mobile ads are different than regular online ads. Although this is obvious, it is important to keep in mind that the smaller screen means smaller ad space and perhaps smaller value to advertisers. But this does not completely discredit mobile ads as a potentially effective advertising medium. The iPhone and other smartphones have greatly enhanced the mobile Internet experience for users, and there are emerging mobile applications that utilize location.

But will the aforementioned technological innovations translate into online spending growth and in turn, mobile ad revenue?


Consumer Spending vs. Advertising Spending

Whenever considering consumer and advertising spending in regard to mobile, think of it as a shift rather than a complete overhaul.

The factors that are most important to this shift include:

  • Shopping on mobiles

  • Paid-clicking on mobiles

  • Ad space on mobiles

Each of these areas present challenges and opportunities in mobile marketing.

Mobile shopping

The ability for consumers to shop on their phone anytime, anywhere seems like an obvious increase in GDP and overall consumer spending right? However, the likelihood of consumers making major purchasing decisions or going through 15 purchase confirmation pages on their phone is slim.

This is not to say that consumers won’t be shopping on their phones at all, however.

The Potential in Paid-clicking

Instead, the greater possibility is that the paid-clicking that used to happen on the PC will now happen on the mobile. This could lead to a lot more mobile search rather than traditional PC search. But mobile search will not completely take over PC search.

The increase in mobile search will yield an increase in mobile search ad revenues.

This increase in mobile search ad revenues will create an ad share spending shift. It is important to remember that the focus must be on how much advertisers are spending, not the number of clicks consumers generate. After all, if consumers are clicking but not spending, the price per click will decrease.

Ad Space

The amount of space for ads to be displayed is minimal. No advertiser is going to get excited over a quarter inch of ad space; people are already squinting when using their mobiles.

But using mobile ads will allow advertisers to beneficially reach their potential consumers 24/7.


“If consumers are clicking but not spending, the price per click will decrease.”


The Rules of Marketing Still Apply to Mobile Ads

Just because mobile ads are a new and different advertising venue, doesn’t mean that the rules of marketing can be disregarded. It is important to adhere to the tenets of marketing when entering into the world of mobile ads.

Remember:

  • Marketing is some form of value exchange.

  • Consumers must be approached in a way that isn’t intrusive or disruptive.

While keeping the aforementioned in mind, it is important to recognize some marketing differences when it comes to mobile ads, such as:

  • The mobile is more private and personal than other advertising mediums.

  • Ads aren’t clicked on as often because people are usually trying to get information or social experiences quickly.

  • The mobile is used frequently but in shorter sessions.

Despite the excitement surrounding mobile ads, it is important to avoid over-saturating this new advertising forum. If marketers use mobile advertising to brow-beat consumers with intrusive ads, consumers will shut themselves off from mobile marketing.

Avoid these marketing tendencies which result in overkill:

  • Too aggressively descending on a potential opportunity to reach consumers

  • Positioning client or brand where they are most visible to the point of being intrusive

  • In-your-face marketing messages



“It is important to adhere to the tenets of marketing when entering into the world of mobile ads.”


The Future of Mobile

The evolving technology of mobile means new advertising opportunities and trends within the medium.

Think:

  • Social networks

  • Location-based services

  • Content creation and sharing

  • ive streaming video

By utilizing the same technologies as consumers, marketers will be able to be more approachable.


Overall Assessment of Mobile Ads

The ability to reach consumers when they’re mobile will expand the scope of advertising. However, there is still not an effective advertising application on mobiles that utilizes location-based information.

There is excessive hype surrounding mobile ads but there is still great opportunity within this new advertising medium. Mobile ads possess the potential to redefine the interactions and relationships between brands and consumers.


Julia Cowher

Want content written for your Brand that shows up #1 on Search Engines and brings you new customers? Contact us.



Sorry, comments for this entry are closed at this time.