Total mobile ad spend is set to hit a high of more than $39 billion in 2018, up from about $13 billion this year. These results are, in part, thanks to innovation in ad formats, real-time bidding and mobile optimization, according to a Juniper Research report.
For mobile marketers, this means investing in mobile ads is more of a sure thing. Recent positive changes in consumer perception equal higher conversion rates when coupled with investment in rich media ads, which have led to big revenue gains among companies such as Facebook.
The Jupiter report focuses on Facebook’s success in using in-app advertising designed to better target consumers. This targeting strategy helps companies aim specific ads at the right users, instead of irritating people by showing ads that don’t apply to them — not uncommon with mobile banner ads.
The study emphasizes that 41 percent of Facebook’s advertising revenue originates from mobile platforms. Facebook plans to next introduce video advertising, although news sources report the new auto-play video ads are on hold until at least 2014.
Ad formats and consumer sentiment aren’t the only factors driving increased ad spends. The publishing industry has simplified the way it sells mobile ads. The increased use of real-time bidding (RTB), a platform that allows publishers to sell in real time to advertisers, will boost total mobile ad spend in the next five years.
For companies that have put off investing in mobile ads, simple methods exist for improving conversion rates — namely features optimized for mobile. Suggestions from the Juniper report include a “click to call” button that puts a consumer in touch with an in-bound call center to express interest in a company or product. This method has a higher conversion rate that’s also more reliable than paid clicks. Another way to increase conversion rates is by double-checking that a link goes to the correct app store.
Mad Mobile is the leading provider of mobile-first solutions for the world's top companies and retailers.
Looking for a technology partner who can deliver amazing mobile solutions across multiple mobile interfaces?