Mobile advertising is a type of advertising that appears on mobile devices such as smartphones and tablets that have wireless connections.
It is the communication of products or services to mobile devices and smartphone consumers. The mobile advertising spectrum ranges from short message service (SMS) text to interactive advertisements.
Mobile technology used by companies such as Google and Facebook tailors mobile advertisements based on an individual’s web browsing history, geographic location, and data collected by shopping habits.
Because mobile devices typically have smaller screens than computers or laptops, this form of digital advertising is usually optimized for small displays by being concise.
Breaking Down Mobile Advertising
As mobile devices outnumber television sets now by almost 3 to 1, the chances of a potential customer seeing a mobile ad are greater than that of most other forms of advertising today.
One of the popular models in mobile advertising is known as cost per install (CPI), where payment is based on the user installing an app on their mobile device.
CPI mobile advertising networks work either as incent or non-incent. In the incent model, the user is given virtual points or rewards to install the game or app.
Mobile Advertising History
The earliest form of mobile advertising took place via SMS text messages but has quickly evolved to mobile web and in-app advertisements.
Many apps offer a free version that can be downloaded at no cost, but which is paid for by placement of advertisements within the app. Such advertisements can be removed by purchasing a full or premium version of the app.
Mobile versions of websites also have advertisements that have been optimized for the smaller mobile displays than would appear on the full version of the same website.
Mobile Adverting Platforms
Mobile advertising also works hand in hand with mobile marketing, which uses personal data collected and technology such as location services to personalize ads based on user preference, habits, or location.
Some mobile advertisements may appear only when a mobile user is in close proximity to a certain store or service provider.
Mobile ad placement works by way of a programmatic bidding process for ad placement, in which advertisers bid in real-time for the right to place an ad on a mobile device.
The infrastructure that allows for this process is known as a demand-side platform (DSP).
The use of such platforms will enable advertisers to optimize their performance based on a number of key performance indicators (KPI), such as effective cost per click (eCPC) and effective cost per action (eCPA).
Simple Steps to Mobile Advertising
Mobile advertising can be done in the following ways:
- Mobile Web: Text tagline ads, mobile Web banner ads, WAP 1.0 banner ads, rich media mobile ads.
- Multimedia Messaging Service such as short text ads, long text ads, banner ads, rectangle ads, audio ads, video ads, full ads.
- Mobile Video and TV Advertising Units: Ad breaks, linear ad breaks, nonlinear ad breaks, interactive mobile video and TV ads.
- Mobile Applications: In-app display advertising units, integrated ads, branded mobile applications, sponsored mobile applications
According to research, the mobile advertising market will continue to be driven by smartphones and tablet devices, which will enhance growth to $19 billion by 2015.