Can your business successfully use mobile advertising to promote its ecommerce website? Many businesses don’t recognize the opportunities in mobile advertising, nor do they know how to apply it to ecommerce. This article will explain the history of mobile advertising and present a few ways your company can use it to drive ecommerce revenue.
Mobile advertising has been the subject of much debate since the Internet was commercialized in 1995. Many analysts projected a quick explosion of mobile advertising, but nothing happened – until 2007, when Apple released the first iPhone. Since then, the mobile advertising market has had progressive if sometimes rocky growth met with both optimism and cynicism. By 2010 Apple released the iPad, which resulted in more optimistic predictions about mobile advertising. By 2011 however, mobile advertising was a paltry $1 billion industry, as opposed to the $32 billion being spent in Internet advertising. But then something interesting happened…
In 2012, mobile usage and mobile advertising grew very rapidly. Mobile ad spend grew 119% to an $8.7 billion annually, and to almost $18 billion by 2013. eMarketer is projecting the industry will break $90 billion by 2018. So what does all of this mean for your business? Is there money to be made with mobile advertising?
Rise of the planet of the apps
Mobile advertising will become far more diverse and widespread over the next 12 months. Moving into 2015, mobile MPUs (mid page units) and banner ads will increasingly fall out of favor as brands and developers discover more creative advertising solutions. These innovative rich media formats include apps, which are becoming the leading channel advertisers use to reach mobile users.
With the growth of the app market, we can expect to see an increase of mobile advertising through mobile application usage. Social media has also given rise to native advertising, which is contextual ads embedded within social media apps. More on that below.
Perhaps one of the best ways to make mobile advertising effective is by providing consumers with a compelling coupon or deal. Experian once reported that 58% of Americans with mobile devices valued mobile ads that gave them coupons. Unlike TV or radio ads, with mobile marketing, the consumer can click directly on the ad to take advantage of a special offer. This is one of the best ways to drive traffic and improve your chances of creating a customer.
Native ads complement the app they’re running on, so they appear relevant and not intrusive. If your business finds and partners with relevant websites, it can create native advertisements to better serve your potential customers or clients.
The geolocation mobile app Foursquare allows users to “check in” at a physical location: a restaurant, bar, gym or car dealership, etc. By checking into the business, a customer has the option to share their location and buying preferences with their Twitter and Facebook connections. Instead of relying on your customers’ check-ins, Foursquare Ads help personalize local searches for consumers looking for the types of products and services your business provides. Similar to Google’s PPC (Pay Per Click) model, Foursquare Ads only charge you when a potential customer takes an action. The difference is that it only counts when that person visits your store, thereby driving more foot traffic to your storefront. This makes Foursquare Ads one of the most impressive channels for mobile advertising.
The continued growth in mobile advertising has given companies more opportunities to present relevant marketing messages to an engaged audience and stimulate revenue. Now is the time to get into mobile advertising, before it becomes saturated by your competitors.
New Perspective has been managing internet advertising campaigns for its clients since 2003 and has a proven track record of delivering positive ROI for our clients. Give us a call at 508-755-6797 and let us show you how to drive revenue with mobile advertising.