Is your business utilizing mobile advertising as part of your advertising mix? If you have been holding off for the right time, consider these statistics:

  • According a an e-commerce report from Monetate, in one year, tablet and smartphone share of traffic to websites for big Ecommerce companies doubled from 5.95 percent for tablets in the first quarter of 2012 to 10.58 percent in the same time period in 2013. Smartphone share of traffic doubled from 5.42 in percent in Q1 2012 to 10.44 percent in Q1 2013.
  • On smartphones, over 80 percent of user time is spent on apps, according to a comScore report from May of 2012.
  • Mobile’s share of web traffic has increased around the world by leaps and bounds. In North America it is up 69 percent from 2010-2012, according to data from Pingdom.com. Some areas of the world were far more dramatic. Asia in particular, led growth statistics, as it is up 192.46 percent in the same time period.
  • Approximately 50 percent of all searches are done on mobile devices.

Ad Units and CPMs

At this point there is not industry standard on ad sizes. The Mobile Marketing Association standard were determined after a lot of feedback and discussion in the industry. They recommend display ad units of 120 x 20, 168 x 28, and 216 x 36. For smartphones, they suggest 300 x 250, 300 x 50 and 320 x 50. Audio units should be 15 seconds for smartphones. For tablets, they recommend 300 x 250, 468 x 60, 728 x 90 and 1024 x 90 ad sizes. For the iPad full screen use 1024 x 768.  Audio units should also be 15 seconds.

Another trade group, the Internet Advertising Bureau, has a different take. They suggest different formats such as filmstrip, slider, adhesion banners, full page and “push ads.” Push ads are banners along the top or bottom that can expand to fill the screen.

A reasonable approach is to start out with commonly used units, and then test more experimental sizes later. The good thing about mobile marketing is that it is very afforable. Mobile CPMs (Cost Per Thousand) are low compared to the Internet and other media.  In a recent report from Wall Street analyst Mary Meeker, the average effective cost-per-thousand impressions for mobile ads was about 80% lower than destop web ads. Even the iPhone, which has been able to get the highest CPMs for mobile ads of any smartphone platform, comes up short compared to desktop ads. In comparison, print ads are roughly 30x more expensive than mobile ads. Mobile search ads are priced lower than mobile display ads.

Mobile advertising has proven to be effective but advertisers need to test different approaches. The conversion rate is lower than traditional web ads. Marketers cannot just transfer their web ads to mobile devices. They should think of how to best use the medium. Tracking, for example, is different on mobile devices. While cookies are commonly used on desktop campaigns, mobile browsers do not suppport them. They can look at the unique ID numbers of the devices, but that does not provide as much information. Emerging options include targeting consumers based on their GPS location.

One of the biggest drivers of mobile advertising is the huge popularity of tablets. They do not have much mobile traffic compared to smartphones at this point, but the CPM is mich higher on average.

Paid Search

Perhaps one of the fastest ways to get involved with paid marketing in mobile is search. A study from Google showed that 70 percent of searches on mobile devices turned into action within one hour. How does that compare to desktop users? For desktop searchers, the number drops to 30 percent.

Clearly, paid search is a powerful way to grow website traffic and monetization. By carefully choosing keywords that users are more likely to use when they have an immediate need for a product or service, you can maximize the effectiveness of your advertising. One caution: make sure you advertise specific products and not the company. For the most part, shoppers are looking for individual products.

Just as important, give users a clear call-to-action. It could be to click for a mobile coupon, get connected to a service representative, or get the code for an SMS message special. Refining and testing your campaigns will let the most effective ones rise to the top, driving increased traffic to your site, and allowing greater monetization opportunities in the process.


Filed Under:    Monetizing

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