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The Mobile Advertising Conundrum

03/02/2015 by

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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Filed Under: Hand-Raiser Blog, Integrated Marketing Communications, Mobile, Small Business, Social Media, strategy Tagged With: , , , , ,

Build Your Own App!

11/05/2011 by

A couple of weeks ago, I had an idea for a mobile application, and thought I would research it to find out if I could get it done. While not really important, I would feel remiss if I were to neglect to mention what it was, it was a parking application for those of us who like convenience in the city. What I found was Appsbar.com, and I’ve been playing with it a little bit ever since. Truthfully, I think that this could open up things for another of my favorite technologies, QR Codes, for mobile advertising and marketing. However, I’m getting ahead of myself.

Appsbar Logo [Read more…]

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Filed Under: Branding, Business Growth, Free Marketing Help, Hand-Raiser Blog, Mobile, Small Business, strategy Tagged With: , , , , , , , ,

Direct-Response Digital – Mobile

07/21/2010 by

You may have thought that the direct-response digital series had lost some steam. Au contriare, mon frere. There have been some technical difficulties at the Hand Raiser offices, but Ryan Meray at C! Tech Solutions got us back in the game…we’ll be at 100% capacity soon – but I digress. The real reason we’re here is because I want to talk about mobile. While thinking of ideas for this topic, I was serendipitously introduced to this eMarketer article in my Twitter stream. I am so lucky sometimes, people might confuse it as good.

In brief, the article states that mobile banners out perform standard banners in Click-Through Rates (CTR) and Conversion. In fact, for rich media formats (like floating ads and commercial breaks) the metrics on mobile double up standard web ads in the positive column. Everyone – including myself – have been predicting mobile to blow up like a smoker at a gas station for the past couple of years. It has not happened. At least not yet, that is.

Statistics such as the ones in the eMarketer article suggest that the proverbial shark should be jumped very soon. Total smartphone purchase intent, as represented in the following chart, is at an all-time high of 16.4% according to Change Wave Research. With 52% of those surveyed planning on buying an iPhone, the iAd purchase of Quattro means solidarity among that ad platform. Plus, their $148 Earnings per Thousand (in some instances) number doesn’t hurt either. Android, the other big market share winner doesn’t realize as high of a return on the AdMob platform they run, but I think it is coming soon.

Smartphone Purchase Intent

So, if you follow the money it is clear that demand from advertisers and app developers will be there soon. Why? It all comes down to purchase intent study. Whether it is SMS, mobile video, or mobile ads purchase intent is higher on mobile/smartphone devices than online in almost every category, says Mobile Marketer.

Not until recently have I seen data this compelling. Between the growth of smartphone purchase (where most of the mobile ads and purchase decisions are made) and the high dollar opportunities for brands, advertisers, and app developers alike – the explosion is as inevitable as death and taxes.

My recommendation to you, Mr./Mrs. Small Business Owner, is if you’re thinking about getting into mobile do so now. The benefits realized from a quality direct-response campaign could be colossal.  Just make sure that your program is integrated with the rest of your messages (as I will always tell you) because ad awareness, brand awareness, and acceptance are all raised with smart, relevant and well targeted mobile campaigns.

If you’re already using mobile, what ad platform do you use? Have you found one OS to be more or less effective for your products?

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Filed Under: Branding, Direct Response, Hand-Raiser Blog, Integrated Marketing Communications, Mobile Tagged With: , , , , ,

Direct-Response Digital: Online Video

07/12/2010 by

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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Filed Under: Direct Response, Hand-Raiser Blog, Social Media, Video Tagged With: , , , , , , , , , , , , , , ,