The Mobile Advertising Conundrum

If you do not change your direction, you may end up where you are heading.

The conventional wisdom in mobile advertising is that application inventory constitutes roughly 80(ish) percent of available inventory. This, as a general statement, is true. Without fail, every survey or OS use measurement stat states that somewhere between 80-89% of time is spent in apps. Often that translates into advertisers’ mobile advertising mix mirroring that ratio – or an even higher percent in-app.

Nielsenmonthlusagemobileappdevices1.png

Yet, when it comes to opportunities reaching interested consumers on mobile devices there may be some facts not taken into account that might be worth review. Simply, how do customers use apps versus the mobile web, and does that constitute a change in ad receptivity?

More often than not the point of advertising is to convert/conquest/add new consumers and loyalists. App usage follows some patterns that may be antithetical to this goal.

 Mobile-app-use-media-2013-600x483

Apps are used for activities like social networking, gaming and entertainment

  • App activities are typically high engagement which cause a higher amount of time spent
  • High usage regularity means the same eyeballs are often seeing the same ads…and still not engaging
  • Mobile websites are a part of the shareable internet, which means their discoverable

 Google Mobile Shopper

The above statistics from Google highlight that branded apps only represent 26% of research while over 87% of researchers are starting on search or websites. On the surface this seems like a great stat for mobile search advertising, which it is. On second thought, it’s also a statistic that tells us even more about behavior which can be helpful for mobile display advertising. When on mobile sites, users are more in discovery mode. If engagement rates from mobile devices tell us anything, it’s that an enormous number of impressions go either unnoticed or not interacted with in any way.

If the preponderance of ads are served in an environment where behavior is less conducive to ad engagement, simply due to mindset during use, then it is likely that there will be fewer opportunities to engage prospects. Yet, the data, location reporting and app traffic is high in-app. This presents a serious conundrum.

In this post, I don’t give the answers, only ask the question…

Should app-based advertising be a smaller mix than the 80% traffic volume it represents?

Are we putting enough incentive on mobile web publishers to provide better data for advertising effectiveness?

Do you have other questions you want answered? Calling all advertisers, mobile data providers, ad servers and publishers – what say you?

What I’m trying to say is, the most traffic isn’t necessarily the right traffic and if it isn’t then what’s the right move to make when considering a mobile display advertising campaign?

 

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Direct-Response Digital: Online Video

In my last post, I started on a bit of a rant, which has led me to do some research on digital direct response ad effectiveness. That research has gotten me all fired up to do the second post in the Direct-Response Digital series – online video.  In the product life cycle of technology, one could hardly say that online video is in the growth stage. With the statistics that I’ve reviewed, I would have to say that it lies somewhere in between growth and maturity. Sites like Hulu, DailyMotion, Netflix and even YouTube continue to gain users and grow, but the heaviest users are fairly mature – sort of like a 24 year old with their head on straight.

So, what does this have to do with Direct-Response Digital you may ask?  Everything. Video represents an opportune growth area for businesses attempting to go small to be big. As Comscore put it, “getting small (and relevant) is the new big.” While economies of scale and that’s a lot of zeros ad buys dominated television, online finds relevance in hypertargeting to be more beneficial for advertisers. You might be able to target 18 year and older business travelers who watch video and use multiple screens to consume media. As comScore put it, 52% of the 39 million users in this category watched online video in the last 7 days. Do you think that it would be nice to hit this nearly 21 million person population with a call to action?

Okay, you might be saying, people online don’t want to be hit with direct response messages. This is why you started this whole quest, right? My answer: no. I started this whole quest to prove the opposite, and data shows that a certain segment of the population do want to be messaged in this way. Supposedly, there are two types of online video viewers. Population A is looking for transportation and escape. Population B is looking for information and education. Population B is the sweet spot for direct response messages. Their profile states that they want to elevate, in general. More specifically they’re (amongst other things) in action mode and more likely to take action on a relevant message, immediately. This is the part where you tap your index finger against your pursed lips as if you’re about to come up with something profound.

The statistics back this up, also. When compared to other forms of direct response ads, online video performs quite well. Direct response metrics such as click-through rate (CTR) are 0.1% for online images/display ads, while online video realizes a 0.74% CTR. These metrics were taken from reelseo.com in 2007, too! I’m guessing the growth in online video is probably followed by a correlating increase in acceptance of direct response video – especially by the information and education seekers.

Plus, you have to think of all of the other benefits of online video with a direct response call to action.

  1. More local search engine content (Great for any small business)
  2. Content for your own website/blog
  3. Useful for Search Engine Marketing (SEM)
  4. Brand building (even though this is the anti-brand building series, I couldn’t resist)
  5. Post to your social media pages

Finally, cost is not nearly as prohibitive as television video production. Some businesses have gotten away with professional online video cost of $300. For $300 and a local ad buy, I would be more than willing to take the risk. In fact, be on the lookout for the Hand Raiser Marketing online video call to action. What’s that? Probably not the best idea for selling professional services? Well, I guess there go my dreams of creating a jingle and imploring you to come on down to the car lot off of exit 12 just past the Sonic! Home of the guitar playing consultant!

There you have it, the nays are drowned out by the cacophony of yeah’s for direct response online video. What’s next? I haven’t decided yet. Let me enjoy this win for the next 24 hours before I get back to work. Have any case studies of online video successes? Inquiring minds want to know.

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