Weekly Tip: A look Into The Future of Mobile Advertising
There are speculations on development of online marketing and its future trends. However, one thing about the future is clear – there will be significant mobile advertising growth. So, don’t miss out on upcoming mobile developments! Mobile technology has been greatly developed in passed years and has become the greatest channel for advertisers to reach audiences, also in multicultural marketing, for example, such ethnic groups as Hispanics. Despite the currently limited mobile advertising budgets, U.S. marketers expect that the mobile budget will increase in the future (IAB, 2012) and the forecasts show this trend to continue worldwide as well (eMarketer.com, 2014).
The current U.S. trends prove validity of the forecasts. The compound annual growth rate (CAGR) has grown by 123%, since 2010 (IAB, 2014).
There are several reasons for mobile advertising to be an important part of the future advertising developments. Dan Rowinski’s in his article describes mobile as a powerful and always connected technology, which gives instant access to information and ability to communicate. Moreover, it provides with valid and valuable data about smartphone users, which could help marketers to reach narrow, very specific groups of people. Besides, mobile technology is different from web in usage. When using mobile, we have frequent but short attention. This makes the industry re-think ways of advertising on mobile devices and look for the new, more effective options.
Rowinski believes that these characteristics together with current programmatic trends shape the future of mobile advertising industry. He points out the two particular trends are starting to define what mobile advertising and marketing is evolving into: programmatic ad buying and contextual networks are the near-term future of mobile ads.
Programmatic ad buy, often associated with real-time bidding, is an automated buying and selling through systems with available advertising inventory. Whereas, contextual networks are generated from the available data, i.e. geographies, interests, even specific locations of device users. It’s extremely valuable for marketers for reaching specific audiences based on this information. For example, you are walking in the city and passing Nike store, when suddenly your phone rings and you get a push notification that Nike store is actually having promotion discount on the running shoes. And guess what – you are a runner and have couple of applications that help you to track the records! Together, this could be a revolution in mobile advertising, while currently we are in the beginning of its development.
To sum up, mobile advertising industry is in a stage of rapid development. There’s a positive growth tendency in the mobile budget trends over years, which makes marketers to think about better ways of advertising on mobile devices. Perhaps, Rowinski’s theory, that programmatic ad buying and contextual networks could evolve to be the near-term future of the mobile advertising development, is right to the point. Perhaps, one day we might wake up in the whole new mobile advertising world.
Sources: eMarketer.com (2014), “Driven by Facebook and Google, Mobile Ad Market Soars 105% in 2013” IAB (2012), “IAB internet advertising revenue report: 2013 full year results April 2014” IAB (2014), “Mobile Buyer’s Guide” Rowinski, Dan (2014), “The Future Of Mobile Advertising Will Be Shaped By Two Trends”
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