Is mobile the still undiscovered El Dorado? Advertising spending is disproportionate to the volume of traffic, which means that advertisers and publishers still have an opportunity to exploit.
The year of mobile has been talked about for several years. Still, expenses on mobile advertising do not match the advertising potential of this medium. Mobile, when included in budgets, is usually as an addition to the desktop, not an equivalent or even more effective channel to reach customers.
According to the latest IAB / PwC AdEx data, the share of advertising expenditure in the mobile channel in total online advertising expenditure in 2017 was nearly 23%. For comparison, the share of mobile page views in total page views is already at the level of 39%.
The share of users using the Internet only through mobile devices is also systematically growing, which is clearly visible on the example of the websites of the largest publishers.
Also read: Poles are buying and using tablets less and less
Turn Big Data to Smart Data
Why such a spread between expenses and traffic? First of all, advertisers are not aware of the possibilities that mobile offers them in the area of using information about users. However, they have in mind a smaller space to be used than in a desktop.
In terms of the number and nature of mobile data, it is second to none. We have behavioral, contextual, demographic and geolocation data in one place. However, we must be aware of the quality of this data, as well as the specificity of the medium itself. The smartphone screen area is limited, as is the number of applications that users use.
Therefore, well-thought-out and limited to the right audience, attractive applications (premium advertising networks) and high-quality creations make sense. Although various types of data can be obtained from many sources (from operators, SSP / DSP, or other companies collecting them), 1st party data, i.e. own data, will become especially important. They can come from, among others from transactional systems, CRM, ERP, websites and finally from mobile applications. The one with more accurate data will have greater opportunities to target the campaign. In the market, according to the slogan Turn Big Data to Smart Data, the winner will be those who have high-quality data before the campaign and data after the campaign.
It should also be remembered that advertising budgets are targeted where they translate into sales. Users, despite the growing trend, still prefer to make purchases via computers. Following the example of more developed markets, we can also expect changes in this field.
The results published in 2017 by the Shoper e-commerce platform show that every fifth transaction in online stores is made on mobile devices. In turn, the Gemius data for the e-commerce market shows 47% of Internet users who declare that they make purchases via mobile devices. Even more admit that they sometimes start shopping on a smartphone and finalize it on other devices – a computer or tablet. If we look at the ranking of mobile applications in Poland in December 2017, among the 10 most popular applications by reach, we will notice as many as three shopping applications and only two social applications. So when talking about efficiency, it’s important to remember that while not all conversions end in this channel, mobile is second to none when it comes to starting the shopping path.
Monetization of ad space in applications
Another barrier is the less developed technologies for surface monetization, especially in applications. At the same time, advertising in applications is the area that will gain the most in the near future. Spicy Mobile research shows that nearly 80% of the time we spend on using mobile devices is spent on activity in applications. The advantage of the application is also the use of native phone functions, including GPS.
In the case of mobile advertising, care for appropriate advertising targeting is extremely important. Thanks to the data, you can not only plan campaigns more precisely, but also personalize the messages themselves. The possibilities and tools available in the mobile also allow the recipient to actively join the brand space, e.g. by making a phone call, sending an SMS or making a purchase. Rich media formats, which use interactive mechanisms and native smartphone functions, such as accelerometer or geolocation, offer great creative opportunities.
Time for the transformation process
2018 is a time of transformation for the mobile industry in many areas, which may affect the size of advertising spending. The entry into force of the EU data protection regulation will introduce numerous changes. We also have to deal with the phenomenon of blocking ads and their visibility (viewability). The latter problem is related to the change of billing models. At the same time, it is hoped that the introduction of legal regulations and industry standards in the long run will organize and stabilize the market to the benefit of publishers, advertisers and mobile users.
source: press release