FORT LAUDERDALE – We are witnessing the true growth of mobile advertising which now accounts for over 80% of total ad sales on social networks such as Facebook and Instagram. It’s important for small business owners to adapt to the changing advertising landscape for attracting qualified prospects to their websites. According to Forbes, 87% of ad sales in Facebook’s last quarter resulted from mobile ad revenue.
The mobile landscape continues to lure users away from desktops to smartphones and tablet devices in greater numbers as these devices become more integrated into our lives. According to an article on Verge, Facebook posted a profit of $3.89 billion in the second quarter of 2017, up 71% from a year-earlier profit of $2.28 billion. With 2.01 Billion total active monthly users, it’s important to monitor the growth of Facebook and its strategies for dominating the mobile advertising space. Over 70 million businesses have Facebook pages and there are over 5 million active monthly advertises on Facebook which is almost double the number of active monthly advertisers at the end of 2015. Increasingly, these advertisers are turning to mobile advertising and programmatic data feeds to increase their understanding of their target audience behavior.
Mobile marketing is ever changing and highly unpredictable. People embrace mobile ads in their daily life and even though many small business owners are hesitant to migrate from PPC (pay-per-click) and SEO, the most common forms of Internet marketing for small businesses to the ever-growing location-based strategic mobile advertising, the shift is inevitable in order to compete in the next three years. Virtual reality will become mainstream which will drive even more users to Mobile where ads will be seemlessly integrated thereby providing even more ad impression opportunities for large social networks such as Facebook and Instagram. Virtual reality will integrate advertising with ephemeral video.
While there are a few well-known DSPs (Demand Supply Plaforms) such as Millennial Media, Mobusi and PocketMath where advertisers can find the best publishers to reach their target audience to buy and sell their online mobile advertising inventory, the majority of advertisers familiar with Facebook and Google PPC and not aware of DSP and how to position their ad spends on mobile advertising. The paradigm shift in mobile advertising for the next few years will be very advanced programmatic buying where mobile ads will delivered location based at the right moment to the right person with the right message (“Just in Time”). This type of programmatic buying on mobile devices will give leverage to mobile advertising and attract more advertisers seeking to maximize their conversion rates and sales via geo-targeting. It will be survival of the fittest for most small business owners because users will expect trending rich ad content.
Here are a few basic terms to know to navigate the mobile advertising landscape:
PPC: Pay per click
CPI: Cost per Impression
CPI: Cost per Install
CPA: Cost per Action
CPV: Cost per View
CPM: Cost per Thousand
CTR: Click-Through Rate
CR: Conversion Rate
IR: Install Rate
DSP: Demand Side Platform
SSP: Supply Side Platform
As an advertiser, you should understand how your ad buys will be governed by the DSP (Demand Side Platform) which syncs with the Ad Exchange so that your target audience can be pinpointed effectively using ad networks and the SSP (Supply Side Platform) to efficiently locate publishers who will deliver your mobile ads to your target audience. Mobile ad spends can integrate so much more programmatic data than standard SEO and PPC so it’s crucial that you truly understand your users’ browsing behavior.
Small business owners need to be attuned to their consumer and their target audience, more so than PPC or SEO because mobile browsing behaviors are highly unpredictable and mobile users’ attention can shift at any given moment. This level of uncertainty gives rise to hesitation among advertisers who are considering media buys in this landscape. Typical mobile ad conversion rates are at about 1.1% with thousands of impressions are needed to produce just one potential prospect. Of course, CTR and CPI are major considerations for each mobile ad media buy considering that most marketing experts agree that it takes 7 – 9 impressions for mobile user to complete the desired call-to-action (i.e. visit your website or download your app). It is even more imperative for small business owners to understand their target audience, their mobile browsing behavior and other data such as behavioral targeting and geo-location. Going forward, mobile programmatic data streams will become more advanced and predictive to pacify advertisers’ uncertainty and win their advertising ad spends. No longer will advertisers lose revenue from mobile ads sent to people who have no interest in their offer or user frustration from ad disruption and badgering. Programmatic mobile data will offer better targeting of their audience, keeping them engaged and offering more strategic data on how to implement ad campaigns that provide the right message at the right time to the right person for optimized CTR.
If you’re a small business owner and you’re considering mobile ads spends in 2018, you need to know your target audience and understand their mobile browsing behavior in order to be relevant in the mobile ad landscape. Look more towards effectively branding your product or service and forget about just selling. Mobile advertising leverage works best for brand recognition and for providing highly engaging content that addresses users’ problems at the right moment with the right message. Plan your mobile media buys with one strategy in mind: to get to know your target audience and to build customer loyalty. Look to solve users’ problems while effectively branding your product or service at the same time. Be creative with your contextual marketing strategies. Create content that tells stories to make a lasting impression on the psyche of your users. You can achieve great results with the slightest changes in your mobile video ad pitch and stick to simple baselines and benchmarks for testing, measuring and optimization of mobile ad campaigns to build relationships with your target audience that adds value to their user experience. Understand your users and their mobile browsing behavior will be paramount. Assign a spokesperson in your company to be the face of your mobile ads videos. Build personas that are easily identifiable and start with solving your users’ problems for added relevancy which will build customer loyalty. Do something big and create great content that your target audience will appreciate.
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