The answer is mobile advertising and it’s growing faster than ever. In fact, it’s currently growing more quickly than any other segment of digital advertising. Mobile ad spending in the United States alone is projected to grow 96.6% totaling $2.3 billion in 2012. Why does this not surprise me? Here are a couple reasons I’ve come up with.
- Mobile ads can be conveniently demographically targeted while you’re on the go.
It’s been recorded that 70% of smartphone users search for information while they’re already on the go. From my own personal experience, I know that when I search for a business/service on my smartphone, it almost always follows with an immediate call-to-action. While on your phone web-searching there’s usually little time for unnecessary browsing when you’re already on the go and in the process of completing a task at hand. In turn, it makes sense that the average CPM for mobile ads is 13 times higher than desktop CPM’s on social forums such as Facebook. Conclusively, this hand-held feature has more value than the stationary desktop and can offer more of a return for your advertisement.
- Social ads are far more responsive than non-social ads and social ads have turned dominantly mobile.
Checking social sites via smartphone has become the standard way to stay updated with friends, family, and professionally. I myself throughout the day will continually check every update a friend or family member posts on any social site I use as soon as they are sent to me. Some of these updates just so happen to be “sponsored stories”, or ads with an endorsement from a friend. These sponsored stories, like on Facebook, also happen to have a 53% higher click-through rate than standard non-social ads. A reasonable logic behind this strong statistic that comes to mind is personal interest in friend/family updates. In my experience, people typically stray away from advertisements, even blocking ads in new creative ways. However, with social interest attached, as well as the inability to avoid streaming updates on social sites, these advertisements are seemingly unavoidable and more effective.
The rapid movement of mobile advertising is exciting and constantly changing. These are merely a couple of my own observations. What do you think?