Analysis: Mobile advertising, where is the future?

Analysis: Mobile advertising, where is the future?

Users are spending more time on mobile media, and advertisers are beginning to invest in mobile advertising, but compared with online advertising or other forms of advertising, mobile advertising still lags far behind online advertising. In 2011, online advertising revenue in the United States was $30 billion, while mobile advertising only generated $1.6 billion.


It is undoubted that advertisers want to attract attention through mobile media, but how fast and how big this trend will be remains to be seen. Compared with online advertising, mobile advertising still has some problems. For example, there is no means of using cookies to target audiences like in online advertising, the screen is too small, and the advertising is more intrusive than online advertising.


Currently, advertisers spend more on smartphones than tablets because more people use smartphones than tablets. However, various data show that tablet ads perform better than smartphones. For example, the click-through rate of iPad ads is twice that of iPhone ads.
Whether mobile advertising revenue can catch up with online advertising is important for big companies like Facebook and Twitter because their users are moving to mobile devices.
Currently, the advertisers that invest the most in mobile advertising include snacks, retail, restaurants, automobiles, finance and education. However, many brands are still in the trial stage and have very little advertising expenses.
Below is an introduction to various types of mobile advertising and related representative companies
Search ads <br /> Search ads are still the largest part of mobile ads, accounting for half of the market. As smartphone users rely more on search while on the go, this situation will not decrease in the short term. Google pointed out that search is the first stop for many long-term search studies, and users will continue this search behavior on tablets and PCs. Mobile search is also valuable to advertisers because it is an intent-driven search, and search behavior on mobile phones is also likely to be accompanied by related search behaviors.
Google said that 9 out of 10 mobile searches will lead to actions such as purchases or visits to businesses. Google is obviously a beneficiary, and Foursquare and Aroudme are also among them.
. Estimated 2012 U.S. mobile search advertising market size: $1.28 billion
.Company with the highest revenue: Google accounts for 95% of the market share

Rich Media and Video Ads


Rich media and video occupy a unique position with the interactive advantages of sound, light and electricity. Advertisers can use videos, animations, images and interactive elements to provide users with an advertising experience similar to that of TV ads or magazine pages. Opera said in July that users who clicked on rich media ads watched the video for an average of 52 seconds, and interacted with the images for 1 minute and 25 seconds. Opera said that advertisers will start to use rich media and video ads more frequently than traditional banner ads.
.Estimated market size in the United States in 2012: $647.1 million Beneficiary companies: Apple's iAD, Medialets, Crisp, Celtra

Banner display ads


Banner display ads are the most popular ad format on mobile phones, but in terms of revenue, they have been surpassed by search ads. Display ads still have potential because advertisers can buy them in standard sizes, just as they are used to in online ads. But because mobile screens are small, oversized banner ads can cause accidental clicks, while too small a size can cause users to ignore them.
The CPM of banner ads on the Internet is generally between $3 and $5, much higher than the $1 spent on smartphones. Banner ads won’t disappear anytime soon, but they are falling out of favor. The share of static and expandable display ads fell from 66% in January to 36% in June.
.2012 U.S. banner display advertising revenue estimate: $457.5 million
Beneficiaries: Pandora, Google, Twitter, Millennial Media, Apple, Facebook

The above are the main mobile advertising styles. The following are some emerging and potential mobile advertising models:
Location-Based Advertising


One of the biggest charms of mobile advertising is that it can take advantage of the mobility of mobile phones and tablets to provide location-based and relevant advertising. Many companies are working hard in this regard, and the main idea is to push precise advertising based on location combined with user preferences and behaviors.
BIa/Kelsey estimates that US mobile local ad revenue will grow from $664 million in 2011 to $5.8 billion in 2016 Early leaders: jiWire, WHERE, Sense Networks
Native Advertising


These companies include Facebook, Tumblr, and Twitter. Platforms like these push advertising content into users' news feeds, making the ads part of the content and hard for users to miss. Facebook currently gets 14% of its revenue from mobile sponsored stories and install ads. eMarketer estimates that Twitter will earn $129.7 million from mobile advertising in 2012.
Early leaders: Facebook, Twitter, Tumblr

Others <br /> There are many other mobile ads, among which the most promising are reward ads, where users can get points or game props by completing specific ad tasks. This type of ad is growing rapidly.

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