Mobile Marketing – What You Need to Know

With the advent of smart phones and with more and more people shifting away from PCs, it’s no surprise that more and more advertisers are reaching out to consumers via mobile ads.

U.S. mobile ad spending expected to surge 75% this year – a whopping $8 billion (and Google pocketing half of that) and more than 50% Facebook’s revenue is made up of mobile ads. And, by 2014 (which is just around the corner), half the U.S,. population will be totting smart phones. Now wouldn’t you want to get a slice of the pie? Fear not for good ol’ Ad Age has come up the Mobile Fact Pack 2013 – a handy guide to mobile marketing. The guide also has statistics on ad spending, facts on Facebook, market-share figures on Android and iPhone, analysis on consumer behavior and a ranking of mobile agencies.

Mobile fact pack image

According to Ad Age, despite consumers spending more time with their smartphones and tablets, they are, for the most part, are loyal with the brands they used on PCs. Google search is just as dominant on mobile as it is on PCs; the same is true for Facebook’s social graph. Even struggling Yahoo has been able to build successful mobile products such as its weather app.
The challenge is that every user that shifts from a PC to a mobile device represents lost advertising revenue. That reality has been playing out in the earnings reports of the biggest sellers of online advertising over the past year, like Google and Yahoo.

But like all things (relatively) new, there are some bugs- part structural since phones have much less real estate for advertising and traditional banners are even less appealing than they are on PCs; and it’s also a tech problem – Browser-based cookies do not work on the mobile web or in mobile apps, so when a user goes mobile they also become invisible to advertisers. That’s one reason mobile tech startups are being snapped up at a furious pace by the likes of Yahoo, Criteo, Media6Degrees and X+1 as they attempt to use advanced algorithms to track mobile audiences.

Fear not folks! There’s always hope! If you look at Facebook (last year, Facebook users moved switched to mobile faster than expected), it moved in-feed “Sponsored Stories” to phones, and Facebook has been so successful that its share of revenue from mobile grew from near zero last year to 41% as of last quarter. Before the end of the year, mobile ads will account for more than 50% of Facebook’s revenue – all by creating an immersive unit and breaking down walls between PC-based display and mobile. In fact, Google’s also doing the same with its “enhanced” campaigns that blend screens.

So, stop sitting on the fence and choose. Will you go mobile?


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