Digital advertising is now bigger than broadcast TV. And mobile ads are a big reason why. In 2013 mobile advertising almost doubled. This year it’s projected to grow another 64%, with one in every five Internet ad dollars going to mobile.1 And why not? If potential buyers can be targeted on their way to the mall, say, isn’t that the time to send out some coupons?
Well, yes, but…
Who’s really clicking on these ads?
According to PricewaterhouseCoopers, almost half the clicks on mobile ads are by accident. Blame fingers that are too fat or too fast. On top of that, 37% of people never click at all. So more than 85% of all mobile ads served up in a month’s time are ignored. Two-thirds of the remaining 15% are clicked intentionally but not watched entirely.2
That leaves only 6% of all mobile users who say they interacted with a brand in the last month through mobile advertising, such as a click-to-call, access to a map or driving directions. For millennials it’s only 5%.3
Then there’s the nuisance factor. The PWC research showed “an overall aversion to the prevalence of mobile advertising.”4 Considering these pitfalls, keep the following in mind when planning your next mobile campaign.
If content is king, context is the crown prince. Mobility amplifies the importance of context. Targeting a consumer’s location, for example, can elevate a mobile ad from an imposition to a valued service. Through a geographic information system (GIS) ads and coupons can be delivered to the right person when she’s in the right place at the right time. And knowing when to “disturb” on-the-go consumers may be just as important. If you serve up an ad when they’re researching something online, playing a game or finding directions, you’ll be ignored – often with an attitude. Better to flag them when they’re perusing news, weather or sports, or simply surfing.5
Click-through rate is not king. According to a recent study, CTR is a poor indicator of purchase intent compared to metrics that measure store visits or secondary actions like making a call. In fact, ads with lower CTRs are often associated with the highest lifts in store visits.6 So just because you’re getting a lot of clicks doesn’t mean you’re moving your audience. And remember, almost half of those clicks are accidental anyway.
Include apps in your planning. In 2015 app usage will represent more than 65% of time spent consuming digital media.7 That’s good news for advertisers. As with broadcast TV and radio, consumers accept ads as the price they have to pay for free apps, which account for 90% of all downloaded apps. Free apps are especially effective in reaching millennials, who download them twice as often as 50+ consumers.8
Zero in. More than half of all consumers (56%) would be happy if they never saw a mobile ad again. Another 12% say one ad per month is plenty.9 Still, that leaves 32% who don’t mind – or even welcome – being targeted weekly or more frequently. You just have to find them. Retail legend John Wannamaker famously complained that half his advertising dollar was being wasted… he just didn’t know which half. With today’s ability to track usage patterns, there are a lot fewer excuses to be wasteful.
The way things are going, your digital ad strategy has to do more than include mobile – it’s got to start with mobile. Don’t make it an afterthought or some miniaturized version of your display advertising. Take advantage of the medium and weave it into the experience. We’re happy to help.
1 Mashable, April 10, 2014.
2 Consumer Intelligence Series | Mobile Advertising. © 2014 PricewaterhouseCoopers LLP.
3 Ibid.
4 Ibid.
5 Ibid.
6 Defining Benchmarks for Global Success. xAd™, 2014.
7 MarketingProfs, November 3, 2014.
8 © 2014 PandoDaily.
9 Consumer Intelligence Series | Mobile Advertising. © 2014 PricewaterhouseCoopers LLP.
See what they have to say