Gartner analysts projected that mobile advertising spending globally would reach $18 billion in 2014, and by 2017 the market will be worth around $41.9 billion. 2017 is just around the corner! If mobile advertising is expected to more than double, the opportunities in the industry are glaringly apparent.
Growth on mobile platforms in general has been exponential, and this has naturally had a large impact on mobile advertising. As more and more businesses realize the need for mobile advertising, the volume of growth will continue to increase as advertising budgets are moved from Web to mobile in the next 12 months.
To kick off the new year, here are five trend predictions for mobile advertising in 2015:
1. Increase in demand for richer measure of ROI. The industry will see more cost-per-acquisition (CPA) campaigns than cost-per-install (CPI) campaigns because advertisers will be looking for more meaningful events; not just an install, but also a deposit or a purchase. Essentially, advertisers will focus more on performance and they will be ready to spend more money when their ROI is clearer with more valuable and hyper-measurable results.
2. Location, location, location. Popularity of location-based advertising is on the rise and will continue to climb, becoming a preference for advertisers. Smart phones have become such an integral part of our daily lives, and as we bring them with us everywhere we go, it offers new opportunities to reach target audiences, while also providing information-rich data for marketers. Location-based technology gives advertisers the ability to use hyper-targeting, enhancing the quality and effectiveness of ads. Traffic sources will also be more targeted and will deliver the quality users that advertisers want to pay for.
3. Video will become ever more essential. A number of marketers have started promoting their apps using video in or as their advertisements. The results have been very effective because the users viewing them are imperative to their businesses. Everyone recognizes the power video has as a medium in effectively communicating any message, even traditional media outlets have recognized that video is the future. It is clear that more advertisers will use video over one-dimensional ads in 2015.
4. Tailored and personalized ads. Everything has become about personalization today, and customers expect their experiences to be tailored to them as such. In order to get the quality users that advertisers want, a focus on a target audience is required. The more and more targeted an audience is, the more successful marketers will be in reaching the right people. Context is also king in advertising, as it drives relevancy for consumers. If the right tools are used to capture a user’s context, the better results the campaign will receive.
Source: Target Marketing Magazine