As the expression “there’s an app for that” reaches its cultural saturation point, advertisers need to gain a clear understanding of the differences between mobile web and in-app advertising, as well as the importance of context when setting performance expectations.
According to eMarketer, mobile ad spending in messaging, display, video and search is expected for the first time to top $1 billion in the U.S. this year, showing the highly fractured nature of the mobile ad market. Research from several mobile ad network providers shows the difference in performance between approaches and resulting user behaviors, with expanding ads performing extremely poorly in terms of clickthroughs versus simple animated banner or video ads. Adding to the challenge of choosing the right approach and setting expectations of performance is the sheer number of ad formats and networks available.
Don’t just think about how and when users are exposed to ads on their phones, but also where they are and what they’re doing at the time. This establishes a complete picture of the context for the ad. Some formats don’t make sense in a broad variety of contexts, therefore a critical consideration would be to ensure that whatever network you’re using offers this type of contextual placement in addition to other targeting options.
There are real differences when considering advertising in apps vs. mobile websites. While casual web surfing on a mobile or tablet device would support the use of display ads to reach an audience, in-app behavior is distinctly different from surfing. This means that even if in-app advertising is available, you need to carefully consider its effectiveness during real-world app usage and the overall impression it would give users encountering it in a particular context.
Consider the following: Do mobile users really need or want a banner ad consuming valuable screen space in the apps they frequent most? It’s this total picture of context that should be the driving consideration for design, placement and expectations of performance. Even if ads aren’t currently available in that location, the ability to leverage background application processing or emerging geo-fencing options allows marketers to take advantage of what would normally be a missed messaging opportunity.
Let’s consider in-ad gaming for mobile, specifically ads during active gameplay. Even at a load screen, would you really expect an ad to drive a clickthrough? Would it do anything but generate an ad impression? As a gamer, I’m not likely to click if I’m stealing a few minutes during the day for a casual gaming session to relax before resuming my day. However, seeing that ad still works for branding purposes as past data suggests.
Mobile is Actually Local
The reality is that the mobile device is inherently local, which needs to factor prominently into planning a mobile campaign. While mobile users are unlikely to be surfing and clicking on banners while walking within the proximity of a nearby coffee shop, you can use technologies such as geo-fencing and background application processing on mobile devices to offer them $1 off an oh-so-satisfying latte. This example makes a strong case for carefully considering branding versus direct response versus promotional programs. It definitely reinforces the importance of context.
Where this gets even more interesting for advertisers is in the ability to exchange data and share interaction points for local, geo-targeted ad or promotional models. If a loyalty or transaction app is already installed on a consumer’s phone, and it enables proximity notifications through access to the device’s location, a retailer can let five other retailers within walking distance leverage this trusted channel to provide truly localized messaging opportunities at a premium.
They can even support a performance-based model, which could accurately determine if the consumer subsequently walked into the establishment. This is all no more complex than any self-service ad model in place today, with legal and privacy concerns addressed via proper disclosures and notifications during installation and/or activation of the app.
Display advertising on mobile obviously isn’t going away. The sooner you realize that it’s not the web as you know it today, stop trying to force current ad models into current mobile platforms, and that context is key, the sooner you’ll be able to generate not only results you can brag about, but returns clients can truly appreciate.