FAQ’s Mobile Advertising

To start, let’s review the definition of mobile advertising. Google defines it as “the inclusion of advertising in mobile applications or on mobile websites.” There are several different types and formats, and they can appear on various mobile platforms and apps. Each type, format, or platform has its own benefits and each is suitable for reaching one or another business goal such as brand awareness or increased conversions.

The basic idea behind mobile advertising is similar to display ads—it involves lots of techniques and data usage. You should still collect data and analyze your target audience persona in order to reach potential customers, just like with any paid ad campaign. However, there is one significant difference between the two: In the mobile advertising ecosystem, most apps are downloaded for free or are based on the freemium business model. And since developers are interested in monetizing them through ads, they use a type of mobile ad called interstitial ads.

Mobile advertising offers a number of advantages to advertisers over desktop environments. Ad blockers are less popular on mobile devices, so the potential revenue losses from those issues are smaller than on desktops. Many types of ad fraud, which are often an issue for desktop publishers, are impossible to perform in a mobile environment. For example, it is harder to impersonate clicks and impressions on a mobile device.

There are significant differences between the ways users search and interact with ads on mobile and desktop. For example, 56% of mobile users search for products weekly, while only 37% of desktop users search for products weekly; 52% of mobile users compare prices weekly, while only 34% of desktop users do so. Additionally, 46% of mobile users check product reviews weekly; 28% of desktop users check product reviews weekly. Finally, while 15% of desktop users say they make a purchase every week, 35% of mobile and tablet users say they make a purchase every week. If you want to get the best results possible from your programmatic advertising strategy take these numbers into account.

Advertising on mobile is gaining popularity with businesses because it offers numerous benefits, including the ability to reach customers in new and innovative ways. In this section, we are going to explore the reasons why mobile marketing is advantageous from an advertiser’s point of view. Here are some of the biggest benefits:

– Accessibility. People are currently spending more time on mobile devices than ever before—so much so that mobile has become a significant part of our lives. We can use apps and the internet to get the latest updates regarding our interests in real-time and from any location, which works wonders for advertisers who can now communicate directly with their audience and deliver messages in an instant.

– Demographics diversity. There are now a plethora of mobile apps available. The number of mobile app users is growing rapidly and they can be found in almost every demographic, socioeconomic background, or ethnicity. Mobile digital advertising is becoming increasingly accurate as it can target users based on time zones, interests, habits or even income levels—therefore giving advertisers the opportunity to reach their audience with pinpoint precision regardless of where they live.

– Creative options. Mobile marketing is a popular strategy for reaching consumers on the go. Mobile ads can be displayed on websites, social media, or apps. Each of these options has unique features and opportunities to play with design. Actually, one can create an app representing their business on mobile devices, after clicking on an ad users could be redirected to this app instead of a website.

– Cost efficiency. Mobile advertising is a relatively inexpensive way to reach potential customers. Compared to the cost of radio or television ads, for example, mobile campaigns are far less costly. Mobile advertising also allows advertisers to track and optimize their budgets more easily than do traditional media such as radio or TV, giving them greater control over their spending.

– Personalization. The ability to reach your target audience with personalized mobile ads is one of the most compelling benefits of mobile advertising. Since each mobile device is usually used by one person, understanding the kind of person who will see your ad on the other side is now a simple and straightforward task. Since each device has its own ID, you can analyze consumers’ habits and preferences, thus creating a perfect mobile advertising campaign with global reach and instant delivery. Personalization can potentially make your campaigns more efficient.

– Targeting solutions. Device ID allows marketers to personalize and target their ads based on users’ behaviors, but this is only one of many ways that location-based services can be combined with other targeting options. Most mobile users keep their devices while traveling, providing an impressive amount of user data indicating where users are physically located at particular times. As a result, marketers can fully leverage the benefits of location-based advertising and combine it with other options, such as behavioral targeting.

– More engagement. Mobile advertising formats include mobile display, rich media and video formats. Some formats are similar to those used on desktops and laptops, but others are entirely different and often bring more engagement. This is due to the fact that mobile ads are getting more and more interactive. Users tend to enjoy engaging with interactive ads, such as rich media, as they allow them to explore a product from different perspectives and sometimes even try it before making a purchase. Some formats allow offering an incentive for user attention – for instance, rewarded video ad formats that are shown within a mobile app.
In addition to mobile advertising’s success in the gaming industry, we can also observe the evolution of digital ads by analyzing the related industries of television, console, and desktop games. From 2015 to 2019, market revenue for mobile games surged from 24 percent to 34 percent. In comparison, revenue for TV, console, and desktop games showed a steady decline within the same time period. There are no questions about the future of mobile gaming that have not been answered.

In spite of the recent outbreak of coronavirus and the resulting negative implications for the industry, mobile advertising spend is expected to continue growing at a rapid pace.

Connecting the dots of the programmatic ecosystem is difficult at first glance, but it can be made easier if you understand the general elements of the system and their roles in it.
Programmatic advertising uses automated processes to trade media across various platforms, including demand-side platforms (DSPs), supply-side platforms (SSPs), and ad networks. These platforms connect to different types of advertising, such as display, search, social media, video, connected TV, and mobile ads. We will now review each of these types in more detail:

A demand-side platform (DSP) is a programmatic software that allows advertisers to find the matching inventory and buy impressions from multiple sources for the best price, usually via real-time bidding (RTB) auctions. A supply-side platform (SSP) – a platform where publishers can sell and optimize their ad placements.

The media-trading process begins when advertisers and publishers meet at an ad exchange, which serves as a digital marketplace where selling and purchasing of advertising inventory takes place. Ad networks, which act as intermediaries between advertisers and publishers, may also be involved in the process.

Advertisers can choose from two main platforms for serving mobile advertising in programmatic:
Mobile web advertising refers to placing ads on browser web pages. Like desktop, mobile web ad formats and sizes should be optimized for each mobile device. Mobile web advertising also allows advertisers to choose engaging formats, such as rich media or interstitial ads. In-app advertising is unique due to its interactive nature, which includes unique rewarded and playable formats within the in-app experience.
In-app advertising is a form of mobile advertising that places ads within apps. Since many users prefer downloading apps over browsing the web, in-app ads are often seen by more people than traditional web-based ads. Plus, the ability to gather data about users enables advertisers to target ads more precisely. There are several types of in-app advertising formats available on both iOS and Android devices, which we will discuss in detail later in this article.

Mobile advertising formats may consist of a single ad or a combination of different types. The following list includes the most common mobile formats, along with their most significant features:
Display advertisements are often referred to as banner ads, and they are the oldest and most traditional type of mobile and desktop advertising. These banner ads usually feature a short text and an image or video. When a user clicks on a display ad, he or she is directed to the advertiser’s landing page for further conversion. Best display ad examples consist of strong calls-to-action (CTAs) and appealing visuals that grab users’ attention. Even though rich media tends to perform better than traditional banners, banners still remain popular due to simplicity, cost-efficiency, and convenience.

Video ads are one of the most powerful tools to deliver a visual experience that simplifies decision-making and can drive conversions. They work best on smartphones, where consumers prefer to watch video content over other devices. The best video ads are catchy, short, and memorable—their main goal is to grab and maintain audience attention. This format also works well for building brand awareness since videos are more memorable compared to other ad formats.
Interstitial ads, also called full-screen ads, are advertisements that appear in-between the user’s interaction with a mobile application. These ads are often placed at logical points of interaction with mobile games and applications—for instance, while waiting for new levels to load. Interstitials consist of short text and graphics. Some interstitials can also include rich media. A user has the option to skip or close this ad by tapping an “X” button on the ad itself. Interstitial ads bring a high click-through rate—they capture user attention well. Their success depends on the quality of an ad and an overall marketing strategy.

Native ad formats blend into the design of an app and are often less intrusive than other types of ads. They mimic the natural look of the app and can be used without annoying most users. They are also immune to ad-blocking software. A good native ad usually contains a brand logo or name, as well as a URL, but relies mostly on the context for its design.

Mobile advertising on social media platforms is a significant and growing field. Twitter, LinkedIn, Facebook, and Instagram comprise the major platforms; Snapchat is more specialized. Each platform offers its own advantages and requires a unique approach. Because of this, advertising on social media might seem like a complicated time-consuming process. But with careful planning and an appropriate choice of platform, these efforts can be well worth it. Facebook Ads alone can reach over 1 billion people in combination with other social media apps; this potential makes social media advertising one of the most important formats in mobile marketing today.

The gamified (or ‘playable’) ad format is a relatively new one that has been used very successfully in recent years. Gamified ads typically use rich media or interactive video formats. These ads are more interactive than other types of ads, and thus naturally spark more interest among consumers. They are also particularly useful for collecting data about consumers; for example, by allowing users to try out a game before purchasing it.

Each of these formats has its advantages and disadvantages, depending on your business goals and your audience’s online habits. You should consider all of them as you develop a strategy for reaching your audience.

Advertisement pricing for mobile ads is similar to other programmatic advertising formats. Those include cost-per-click (CPC), pay-per-click (PPC), cost per thousand impressions (CPM), cost per action (CPA), and cost per lead (CPL). However, don’t be confused by the number of abbreviations – let’s instead review each of them.

Pay-per-click (PPC), also known as cost per click (CPC), is a pricing model in which an advertiser pays for each click on their advertisement. PPC allows for budget control and targeted traffic delivery, but can sometimes become expensive when it comes to search advertising or popular keywords. The most important number for CPC-based campaigns is click-through rate (CTR). It is calculated as a percentage of clicks on an ad to an overall number of impressions: 5 people out of 100 clicked on an ad, so its CTR = 5%.CPM (cost-per-mille) is another popular metric. It is based on the number of impressions and comes from the Latin word ‘mille’ meaning ‘thousand’. This model leaves advertisers heavily reliant on ad view ability but works well for campaigns targeted at building brand awareness. CPM is a simple and budget-friendly option for most types of campaigns, especially ones with high click-through rates.

CPA (cost-per-action) is a type of pricing that rewards advertisers for certain actions completed by their target audience. Such actions can include clicking or converting, such as purchasing an item or downloading an app. CPI (cost-per-installation) is another form of CPA, used mostly with mobile apps. For example, advertisers pay when a user downloads their app.

CPA (cost-per-action) is an advertising model that charges advertisers for every conversion, rather than for impressions or clicks. CPL (cost-per-lead) is a variation of this model. Both models have their benefits, but it is also important to remember that they do not give you any information regarding the customer journey and the touchpoints that led users into conversion.