Mobile Advertising: Why It’s Called the Small Screen Giant

mobile-ads

shared from The Qadabra Blog |

Digital banner ads spending is on the rise in a big way; and it’s not slowing down anytime soon! According to the IAB Internet Advertising Revenue Report, internet ad revenues grew an impressive 18% year over year in the first half of 2013, overtaking the total media market, which grew only 3% in the same time. USA remains the biggest market, followed by Japan, China, Germany and the UK.

Mobile advertising

Display-related advertising, including digital video and rich media, accounted for 30% of revenue, up 9% to $6.1 billion with 46% of all ad revenue taken by leading retail, financial services and automotive industries.

However, the real success story in all this is undeniably the evolution of mobile, which has been nothing short of explosive. Due to the increasing popularity of tablets and smartphones, mobile ad format has grown from 7% to 15% of the overall online advertising income in the past year alone. Its revenues soared an impressive 145% to $3 billion in the first half of 2013, up from $1.2 billion in the same period last year.

According to publicis-owned ad agency ZenithOptimedia, mobile is growing seven times faster than desktop Internet spend, with mobile ads increasing by 77% in 2013!
mobile graph

Around half of Facebook’s revenue is from mobile advertising and unsurprisingly, the social media giant accounts for approximately 15% of all global mobile ad spending. Along with Google, Facebook is now the top ad publisher not only for mobile but for the entire digital sphere.

So how are people spending their time on their phones?

As more and more functionality is being added to smartphones, people are able to manage almost every aspect of their life from their phones – from games, to work, travel, shopping, food, social as well as health and finance. More and more surf time is being spent on mobile devices, but how exactly is that time being used?

ComScore have put together an analysis of mobile use, revealing that 80% of mobile media time is spent on mobile Apps:
mobile graph 3

Advertisers consider smartphones as most compatible for direct-response and performance ads as users can be targeted precisely based on their location and current needs. Tablets, on the other hand, appear to hold more potential for brand advertising, since people watch video on the larger screens that are similar to television.

What about desktop advertising? Is it still relevant?

While the growth of mobile advertising is definitely affecting spending directed toward desktop ads, desktop ads revenue still make up most of the digital ad revenue today, a trend which is predicted to change in the upcoming years:

US digital spending

As you can see, while smartphone and tablet traffic is rapidly growing, traditional desktop traffic is still the predominant traffic source and desktop ad spending is still on the rise.

mobile graph 4

Source: Monetate Q1 2013 Ecommerce Quarterly

Internet advertising is becoming increasingly relevant as businesses continue to apply more of their budgets in the online world. The undeniable rise in functionality and efficiency of smartphones and mobile devices open up new and exciting opportunities for the digital ad world, as advertising becomes targeted, personalized and more accessible. Businesses recognize that to invest in digital is to invest in the future; and future is mobile.

Source: http://www.qadabra.com/blog/self-serve-ad-platform/mobile-advertising

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Mobile App Advertising Basics with Ryan Morel of PlacePlay.com

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