The mobile advertising dilemma

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Dileep Kumar

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The advertiser should follow the target audience: Rahul Nanda

Spending on in-app advertising is expected to reach $17 billion by 2018, according to Juniper Research. This is up dramatically from the $3.5 billion spent in 2013, and makes in-app advertising the fastest growing segment of mobile advertising. But advertisers in India are keener on mobile web than apps when it comes to deploying their advertising buck. Which of the two could be a more relevant platform?

The advertiser should follow the target audience: Rahul Nanda
If we were to go simply by usage in terms of time spent on mobile apps versus mobile web, the former seems to be the winner of the better platform for ads. A recent data report from Flurry, an app analytics provider, shows that mobile apps accounted for 86 per cent of the usage, that is two hours and 19 minutes of the time spent, while mobile web usage dropped to just 14 per cent or 22 minutes per day as of last month. This may be data emerging from the US but still it gives us the global picture in digital advertising. According to Flurry, gaming apps still dominate mobile usage with 32 per cent of time spent on iOS and Android devices, while Facebook was second with 17 per cent of time spent on mobile. YouTube was at 4 per cent and Twitter at 1.5 per cent. These are your usual suspects for mobile advertising, today.

Ad spend data from eMarketer reveals that people spent about 18 per cent of their time in Google properties such as YouTube and brought in 49 per cent of the mobile ad spending. By contrast Facebook received 18 per cent of mobile ad spending for its 17 per cent of time on its mobile properties. The 'rest of the apps', including gaming apps, however, are not getting their fair share of advertising spent. With 65 per cent of time spent, they received only 32 per cent of ad revenues. This implies a large opportunity for these apps to monetise through advertising. But is this view superficial?

Mobile users prefer the browser because it offers access to all the content they want, in one place. There is no switching required between different applications for different pieces of information, as all content they need sits within a singular browsing experience. Mobile web gets you that reach and has better discoverability. In contrast apps are too fragmented. The mobile web is also getting more 'app-like' as smart web designers push the boundaries of what HTML5 can do. As a result, mobile advertisers will benefit the most from browser-based opportunities. So where does this leave the marketers? The main goal marketers aspire to achieve is delivering the right ad, in the right context, at the right time. The chances of achieving this are better when you have a good understanding of exactly where users will be more receptive to your message. It is important, then, to understand behaviour taking place on both the platforms - apps and the browser. Native app games like Angry Birds and Cut the Rope, while fun to play, aren't the best place to effectively reach corporate CEOs for advertising. To reach a CEO, it is critical for marketers to understand where he's likely to be more receptive to that message - while browsing news and information on the web or gaming in a mobile app.
Rahul Nanda
Senior VP (Digital), Cheil Worldwide SW Asia
Mobile web is not dead: Kshitiz Randhir Shori
There's no denying that apps is a growing platform for mobile ads because they address the challenge of better user experience. So marketers can create rich ad experiences and take advantage of device capabilities with apps. In fact, Opera Mediaworks, in its recent State of the Mobile Advertising report, concurred that in-app advertising outperformed banner ads on the mobile web. Rich media ads served within the mobile applications were more compelling than those served on mobile web. Users clicked on apps 1.53 per cent of the time versus 1.12 per cent of mobile web as per the report. The mobile advertising dilemma > afaqs! news & features
 
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