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7 Key Opportunities and Challenges for Mobile Advertising?

Updated: Mar 5, 2023

How have the challenges for Mobile Advertising evolved over the years? We will take an in-depth view of you and gain valuable knowledge!


What do you know about Mobile Advertising? It has become a powerful marketing tool for businesses of all sizes. With so many people using their smartphones and tablets to access the internet, businesses can reach a large audience with targeted ads.


One of the biggest benefits of mobile advertising is that it can be targeted to a specific audience. Businesses can target ads to people who have visited their website in the past, people who are likely to purchase a product or people who live in a certain area.


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Table Of Content


1. What About Mobile Advertising On Mobile Devices and How It Helps?

2. What Are Some Current Mobile Advertizing Trends?

3. What Are The 2 Types Of Mobile Platforms?

4. What Are The Different kinds Of Mobile Ads?

5. Next, Figure Out What You Want To Do With Mobile Advertizing 2023?

6. How To Set The Length Of The Ad Campaign?

7. Even Better If You Can Keep Your Content Interesting and Fun To Read.


Let's get into it. Another advantage of mobile advertising is that it can be used to promote a product or service across a wide range of platforms. Businesses can use mobile ads to promote their website, medium, or video!

1. What About Mobile Advertizing On Mobile Devices and How It Helps?


Mobile Advertizing ads are how the advertising world tries to reach people who are always on their phones or other mobile devices. In simple terms, it is a way to advertise products or services that you see on your smartphone.


Advertising on mobile phones can be in the form of text ads, banner ads, videos, or even mobile games.


Taking into account the average size of a phone's screen, the ads are made to fit into a smaller area.


Mobile advertising is a type of mobile marketing that uses traditional methods and strategies to gather information. This could include consumer profiles, demographics, habits, preferences, etc.


So instead of putting up posters and banners to reach your market in person, mobile advertising takes advantage of how popular smartphones are.


When it comes to marketing campaigns, the idea of mobile advertising has changed everything. Its benefits are said to include a rise in customer engagement rates, lower costs, more personalized relationships with customers, and the ability to use social media.


In a world where there are more mobile subscriptions than people, it would be silly not to use that as your marketing strategy.


2. What Are Some Current Mobile Advertizing Trends?


It's common to see an online ad pop up while you're using an online app. Consumers expect these, and more and more of them are responding to the ads.


Interactive Advertising Bureau says that mobile advertising grew by 67% in 2022 and will grow by another 15% by 2023. Since then, it has grown more and more every day.


A report from emarketer says, "In 2021, the world will spend $368.25 billion on digital ads, which is 17.6% more than in 2019. That means that digital ads will make up about half of the global ad market for the first time.


mobile advertising


Another IAB Internet Advertising Revenue Report, 2021 for the US says that "mobiles contribute the most to the steady growth of digital marketing and account for about two-thirds (65%) of 2018's internet ad revenues. From 2017 to 2021, the money made from mobile advertising grew by up to 40%."


In a similar way, this article from Ad Age says that "digital advertising had another record-breaking year in 2021, with ad revenue reaching $88 billion, a 21 percent increase from 2018."


What you need to know about the basics of mobile advertizing


So, what do you need to know before you jump into the wonderful, but always-changing, the world of mobile advertising?


Here are some of the most important things you need to know:


The words and phrases used:


The new trend in advertising is programmatic advertising. Everything is changing to digital. Here are some of the most important words:


Demand Side Platform (DSP): This is also called "buy-side optimizer" or "buy-side platform." DSP is a digital standard that makes it possible to buy media from multiple sources in one place. This also includes the ability for all sources to bid in real-time.


Real-Time Bidding (RTB): This method is used to buy and sell ads that are up and running at the moment (live).


Ad exchanges are the places where you can buy and sell online media advertising inventory. This is the modern version of how bidders used to negotiate prices by hand in the past.


This term refers to the companies that help publishers sell their ads through other companies. One of their main jobs is to sort through the ads from different sources and find buying opportunities for advertisers.


Supply Side Platforms (SSPs) are exchanges where publishers can meet with advertisers to sell their ad space. People also call them "sell-side optimizers," "inventory aggregators," and "yield optimizers."


Agency Trading Desk (ATD): As the name suggests, this is a part of an advertising agency that helps clients buy advertising space.


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3. What Are The 2 Types Of Mobile Platforms?


It is important to know the mobile platforms that can be used to target your ads.


The two types of mobile platforms that are used are:


Mobile Web: Pages that are set up to fit the sizes of mobile screens (both smartphones and tablets). Since more people use mobile devices than desktop computers, it is easier to reach a larger number of your target audience. Modern ads, like video ads and other versions with rich media, help to make the ad experience better.


In-App: In the world, we live in now, you can't talk about mobile advertising without mobile apps. One of the most popular ways for marketers to promote their products is through app advertising. You just need to choose the right apps and put up the right content in them.


Apps are easy to download and use, which is why most mobile users today prefer them. In-App ads are those that can be seen inside these apps. These are made to fit the habits and preferences of users and give them the best browsing experience possible.


The next sections will talk about how the platform affects the ad formats.


The language used to talk about money:


There are a few different ways to pay for mobile ad campaigns. These things are:


In some countries, Pay Per Click (PPC) is also called Cost per Click (CPC). Simply put, the amount paid depends on how many times the ad is clicked.


Cost per Impression (CPI): Every time a new person looks at an ad, a payment is made.


Cost per Action (CPA) means that you get paid for every action you finish.


Cost per View (CPV) means that money is paid every time an ad shows up.


Click-Through Rate, or CTR, is the number of times a link is clicked on.


Cost per Mile (CPM) is the amount paid for every thousand times an ad is seen.


Conversion Rate (CR): The number of people who do what you want them to do.


Install Rate (IR): The number of people who download an app.


Pros of advertising on mobile devices


Why does advertising on mobile devices work so well?


Markets are always getting bigger. New businesses and entrepreneurs are looking for ways to take advantage of this great chance. Here are some of the most important things that mobile advertising can do:


Accessible: The new way to talk to people is through social media platforms and mobile apps. People spend a lot of time making sure their apps are up to date. So, it's important to get your campaign right for your customers. What better way to do that than to call them on their cell phones? Accessibility is a benefit of mobile advertising that makes sure your ad campaigns are delivered quickly and are easy for users to get to.


Geo-targeting: Since most people travel with their cell phones, marketers and advertisers can use this information to send ads that are based on where people are.


Location-based mobile advertising is a great way to learn about consumer preferences and habits, such as where they like to shop and how often they go there. For example, if a shopper in X location sees an ad for a sale in a store there, they are more likely to go to that store.


Understanding consumer habits: Mobile devices have a unique ID. Using the IDs, it is easy to study both the offline and online habits of the target consumers. In turn, this helps come up with a good marketing plan.


Cost-effectiveness: Mobile advertising is one of the least expensive ways to reach your target customers. In fact, making a mobile advertising campaign costs a small fraction of what it costs to make a TV or radio ad. Being easy on the wallet means that marketers can send messages more often or even go after new customers more than once.


Personalized advertising: One of the best things about mobile ads is that they can be tailored to the user's preferences. Through social platforms, customers can choose to follow, like, or even send their own ideas to their favorite brands.


There are a lot of creative ways to use mobile advertising. Since it works well with social media channels, websites, and apps, the ads can be made more creative. Mobile ads are more likely to make a strong impression on their target audience because they look good and reach people right away.


Fraud resistance: Unlike desktop advertising, mobile advertising makes it easy to spot fraud. "Click to calls" and their use is easy to check.


Cell phone users carry their phones with them everywhere they go. If you use a mobile device, you are more likely to see an ad than if you use a desktop or other traditional advertising method. Also, it's easy to keep track of how users respond right away.


Higher conversion rates: Ads, clicks, spending, and conversions on smartphones are growing faster than on desktops or tablets.


People like to take part in ads that come with contests, games, and other fun things. Using gamification and other features like that makes mobile advertising more fun and interesting.


Mobile advertising vs mobile marketing


Mobile advertising and mobile marketing are the same things, but the ways they are used are different. Mobile marketing is a broad term that covers both mobile advertising and mobile marketing.


Mobile marketing uses a variety of services and data, such as location-based services, buyer personas, their habits, user preferences, etc.


So, some mobile ads will only show up when a user enters a certain geo-marked area.


On the other hand, marketers and advertisers bid in real time to place an ad on a mobile device through a process called "programmatic bidding." This includes things like demand-side platforms (DSP), which help advertisers measure how well their ads are doing. Key performance indicators (KPI) like CPC, CPA, etc. are used to improve performance.


4. What Are The Different kinds Of Mobile Ads?


There are different ways that mobile ads can look and work. Marketers use each of the below-mentioned mobile advertising solutions, but the one they choose depends on how well it fits their business and how it fits in with their overall strategy. When it comes to mobile advertising, different social media platforms work in different ways.


The next step is to think about the different kinds of mobile advertising that are available and how they fit with the goal of the ad.


Here is a list of the most common ways that mobile ads are made.


1. Banner advertising


Banner ads are the oldest type of mobile advertisement. Web marketing is the place where banner ads got their start. But even though people are more interested in interactive ads with rich media, banner ads are still around and popular.


Banner ads are often built right into a website or app. Most of the time, these are shown by images (or graphics with text) that are meant to get people's attention. The goal is to get customers to go from the host page to the advertiser's page and then turn them into paying customers.


Mobile Advertizing


Banner ads are very popular because they use bright colors, good graphics, and "Call to Action" tabs. The way people react to something depends on how good it looks.


Even though banner ads are cheap and still used by a lot of people, the world is quickly moving on to more modern options like gamification ads and video ads (described below).


Still, banner ads are alive and well and are in high demand.


2. Video advertising


A report from Business Insider says that, as expected, spending on social video advertising doubled in 2023 to more than $7 billion.


Just those numbers say a lot!


Video advertising is a very effective way for a business to get the number of conversions it wants.


When a customer is trying to decide what to buy, product videos are very helpful. Videos can give viewers a complete visual experience, which helps them get a better feel for the products.


A large number of people watch videos on their phones. In fact, watching video ads on a phone has a bigger effect and leads to more sales than watching them on TV.


Mobile Advertizing


Advertisers and marketers use different methods to get video ads to show up on a mobile device. There are options like optimizing a YouTube ad, putting Shopping ads under the main video and putting sponsored ads at the beginning of video content.


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Some important tips for making mobile video ads that have a good return on investment are:


Keep it SIMPLE


Use your CREATIVITY


Keep it brief and to the point.


The sound and pictures are NOT TOO BRIGHT.


Put up a CALL TO ACTION sign.


3. Full-screen or between-screen mobile ads


Interstitial ads are the full-screen videos or images that are usually shown when an app changes from one thing to another.


Let's say you're playing a video game as an example. You just finished Level 1 and are ready to move on to the next level. That's when you might see a picture or short video ad. These are mobile ads that play in between other things.


Mobile Advertizing


Interstitial mobile ads


Compared to banner ads, a lot of people click on interstitial ads. But the rule for interstitial ads is that they can only be shown when there is a break. So that the ads don't get in the way of what the user is doing, they appear when the content changes.


Text, graphics, and rich media are all types of ads. Lastly, users usually have the option to get rid of the ad by clicking the X button (usually on the top right).


Since these ads take up the whole screen or most of it, they are good at getting people's attention.


4. Native advertising in apps


Native ads are like banners, but they don't say what they're about directly, so they can be thought of as advertising content. The ads are shown in the app's normal setting on the mobile device, so they don't stand out.


They have an advantage because they are built into the mobile environment. You can't stop them.


So, you can show your ad to the right people without forcing them to stop what they're doing. The look, the buttons, and the design are all the same as other parts of the app.


Native ads for mobile phones


Some important tips for making high-quality native mobile ads are to include the following:


Headline


Crisp description


Brand logo or name


URL


Facebook ads are a well-known type of native mobile advertising. People scroll down their page or news feed and see ads in between two news stories.


5. Mobile advertising that uses games


Interactive video or rich media ads with gamified options are a type of this. Smart marketers who want to make interactive ways to advertise love to use these.


Users are naturally interested in games. When marketing apps, mobile game ads work very well. For example, if the app is about solving problems or finding your way on a map, short, quick gaming videos that let users try it out work great as an ad.


Mobile gaming ads are a great way to get customers interested on a basic level. These are also good ways to get information about users, like consumer profiles, etc. Since game-based learning is now seen as a very advanced way to learn in all fields, gamification-based ads have a high rate of conversion because they are able to get the user's attention.


A person who is playing a challenging game is more likely to look at the ad for 10 seconds or more.


IAB's reports on internet advertising revenue show that in 2022, all digital ad formats (mobile and desktop) grew in the following ways:


Total revenue from search ads is up 24% to $26.8 billion.


Total banner advertising is now worth $15.7 billion, up 27% from last year.


Video advertising income has grown by 35% to $7 billion.


How to create a mobile advertising campaign:


For an online mobile marketing campaign, there are a few key things that are used. Here's a list of things that come together to make a successful mobile advertising campaign:


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5. Next, Figure Out What You Want To Do With Mobile Advertizing 2023?


As a first step, it's important to set goals for the mobile advertising campaign, just like you would for any other marketing campaign. Having clear goals or goals that can be measured helps you understand your results and learn from them.


In the beginning, a mobile advertising campaign is made to spread the word about the brand and boost sales. It also helps send people to the landing page for the company. A lot of companies make ads just for mobile phones to promote a special deal or a newly released product.


No matter what the goal is, being clear on the goals helps define the metrics that are needed to reach the goals.


Some goals for a campaign of mobile advertising could be:


Increase brand recognition


Create "x" number of sign-ups


Get "x" number of opt-ins from mobile users


Get people to visit the landing page


Getting "x" many people to play a video game


Boost sales to "x" amount


Add a specific number of new customers each month.


Spread the word about a special offer


2. Choosing who you want to reach


One of the main reasons to start a mobile promotion event is to get more contacts or clients.


But it's not enough to just add up the number of people. To be the best at advertising, you need to go after a certain group of people. The first step is to figure out who you want to reach.


Once the target audience is known, it is important to study their preferences and other details, such as what they need, what they like, how they react, etc.


You can find out about your target demographics through phone surveys, text messages, and social media.


Most customers respond better to mobile ads that are tailored to where they live. When you focus on local customers, you get more conversions.


Studying a group of potential customers can also help you figure out how they use their mobile devices.


It's important to think about how people look at things.


They usually have smaller screens than regular desktops, so the text, images, and graphics need to be clearer. Also, keep in mind that people who use mobile phones tend to have shorter attention spans. Because of this, the ads should be interesting enough to get their attention.


Getting profiles of your target audience can be done with a number of online tools, such as Google Analytics.


3. Figure out what kind of mobile ad you need


Careful thought is needed to figure out what kind of ad campaign will work best for your product or service. Advertisement campaigns could be made just to boost sales or just to make people aware of a brand.


As was said in earlier parts of this article, marketers use different kinds of mobile advertising formats. A campaign might work better with video ads, but it might also work well with photo ads or banner ads.


If you want to get more people to click on your ad, you can use a regular banner ad. When the goal is to make a lot of sales, a Video or YouTube ad with a "Call to Action" link works well. Make sure that when people click on the CTA link, they end up on a page that talks about your product.


When you need to market an app-based product, native ads are a great way to do it. When a user sees the ad on their phone while doing something else, they will be eager to install the ad (of course, the services provided by the app should be fairly attractive).


A lot of other mobile games or apps that offer video games like to use mobile ads that are based on gamification. As was already said, gamification ads get people excited and interested.


It's true that some types of mobile advertising use less resources than others, but when choosing a type, it's important to think about the goal and the audience. Video ads, for instance, are expensive to make but bring in more leads and raise brand awareness.


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6. How To Set The Length Of The Ad Campaign?


The first step is to decide what kind of mobile ad campaign you want to run and how many people you want to reach. After that, the only thing left to do is plan the campaign.


Start by making a plan for how long your ad campaign will last. Again, this depends on things like:


Types of things that users will have to do (single click, multiple steps, etc)


Preferences of user groups, as seen from data already made.


Budget availability


If a user only has to click once to get to the page where they can buy something, your mobile ad will be short. On the other hand, a campaign that aims to increase both brand awareness and sales will have to go through many steps and will be longer because of this.


The length of the mobile ad campaign is another thing that affects the total cost, time, and resources.


5. Think about the devices you want to use


Ad content varies based on the devices that are targeted. Different devices use different kinds of content.


Smartphones usually have small screens, so the content on them needs to be more focused and have fewer breaks. On the other hand, creatives for tablets and iPads need to be of high quality.


So, it's important to know what devices your target customers like to use. We actually keep coming back to the idea that it's very important to know who your users are.


Even on a single device, a user's time spent on apps or the mobile web needs to be taken into account. Different regions and countries have different tastes.


6. Ad designing


It's finally time to design the mobile ad, including the graphics and the text.


All over the internet, you can find general rules to follow when making a mobile ad. But it's important to keep in mind that mobile ads are made with one goal in mind: to get the viewer's attention.


Focus on using good graphics, especially if the ads are for iPads and other tablets. Keep in mind that people who watch ads on a slightly larger screen expect better quality images than people who watch ads on their cell phones.


When making certain types of ads, like banner ads and interstitial ads, it pays to spend time and money on good graphics.


When it comes to mobile ads, nothing works as well as the content. The design might not be enough to do the job.


Make sure your content copy is interesting enough to get people to buy your products. The content of an ad needs to be short and clear about the product or service, and it should also have a tab that gets people's attention.


7. Even Better If You Can Keep Your Content Interesting and Fun To Read.


Make sure there are as few touch-points as possible. After seeing the ad, a user might not want to do the CTA if it takes too much time and thought. If you keep them from their mobile work for too long, they might give you bad reviews.


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Lastly, as was said earlier in the article, keep your focus on a small group of people. Give your users the impression that the mobile ad knows what they want and is made for them. User data like age, gender, location, shopping habits, and social media preferences can be used to make ads that are more relevant to the user.


7. Data management, reporting, and analysis


It's easy to get information from users. But it is very important to respect the privacy of your users and keep their data safe. It is important to keep track of the information that is collected during mobile promotions.


When mobile campaigns are run, a huge amount of data is collected. It's a lot more than what you can get from online desktop ads. For good data management, think about the following:


What kind of information about users do you have?


Who owns something? (it is advisable that you take ownership of the data from your technology provider)


How will the mobile audience be divided into groups?


How are the links set up to track?


Again, an important part of a mobile advertising campaign is reporting and analysis. it means looking at the following:


User funnels and the steps you want your customers to take to reach your goals


User behavioral patterns


User's engagement time


User visit frequency


The overall contribution of the campaign to the overall goal


8. Tests of ads


So, you've made your ad and you're ready to go?


Now is the time to see how well they work. For a short time, like a month, measurements and metrics can be taken to see how well the mobile ad is doing. A review at this point will tell you how well the ad is doing in terms of sales and conversions.


Other things that can be tested are user flow, responses, load testing, data capture, and so on.


Most of the time, there are two main ways to track mobile campaigns:


Unique Identified matching


Device Fingerprinting


Once you have some basic numbers, you can take your time to make your mobile ad converts better.


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