The Future of Paid Advertising on a Mobile Platform

Hey everyone. I’m Andrew Carlsen, a recent addition to the BrightWave team. A little background on myself:  I managed email marketing programs at AirTran Airways and HalfOffDepot.com and have touched everything from social media to paid advertising along the way. Something caught my attention recently that I think may relate to the work we all do as digital marketers.

Anyone watching 2012 Q1 ad sales from some of the world’s biggest sellers may be seeing some interesting data.  All the major ad networks seem to be reacting a little differently as mobile gains market share, and it begs the question – How will paid advertising adjust to the mobile market?  

Google’s ad prices are dropping, while engagement is on the rise. CPC decreased by 12% year over year, and 6% from the last quarter, but engagement has increased 39% and 7% year over year and from the previous quarter, respectively.

Meanwhile, Facebook’s prices are increasing even as engagement dips. Engagement is down 8% from the previous quarter, and CPM impressions are up 41% year over year (don’t know CPC  or CPM? Pay attention to these, they may not be email marketing, but all tie in to the same goals – customer engagement and retention).

Bing and Yahoo show similarly confusing results, with their total paid search spend growing, while their clicks dipped several percentage points. As a result, the overall picture looks something like this:

Where are we headed?

This trending data seems contradictory and confusing, but I think it points to the fact that no one is sure exactly how mobile will affect digital advertising as it continues to take on market share. Here are two factors that I think need to be addressed in order to begin making sense of it all:

Fragmentation of Screen Sizes and Devices
Traditional paid advertising placements tend to get lost on a smaller screen, and many mobile optimized sites have no ads at all. What is the next step to address that?

Smarter Targeting and Segmentation  
Advertisers could be going after impulse shoppers while they’re on-the-go. They could also leverage geo-targeting for location-based ads, or a myriad of other mobile behavior-based options.

While I do not know what the answers will be, I do know one principle that yields measurable results in email marketing that would help point advertisers in the right direction: test, test, and test again.

What do you think is in store for the future of mobile advertising?

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Social Media and the Move to Mobile

People like to say that social media isn’t going anywhere. Facebook has upwards of 800 milion users, Pinterest is gaining incredible momentum while still in private beta, and so on with the other big networks. Social media has become a huge part of the online experience, becoming the top reason people log onto the Internet. One can’t refute that strength of these online platforms.

I agree. Social media is essential to marketers, and consumers really. But it is going somewhere. Social media is going mobile.

mobile phone user

photo courtesy of gailjadehamilton on flickr

If you haven’t heard the rumors, then you’re behind the times. Internet users, meaning social media users as evidenced by the aforementioned Internet usage tidbit, are getting online while on the move. We live in a society where no person can physically stay in place for too long, so this is the logical next step, but social networking having grown to being an activity of more than 50% of mobile users? That’s a statistic worth paying attention to.

How are social networks faring in the mobile arena? The big three (how many refer to Facebook, Twitter, and LinkedIn) have gotten into the mobile arena because their audiences demand it. The mobile app market for iPhone and Android device users offers myriad social third party social networking apps that allow for greater ease of use for the tweeter, or the antsy pinner that MUST get that animated cat GIF online immediately.

Why the flood on mobile social networkers in the past couple years? Well, for businesses, it may be too late to be asking that question. At this point, it’s adapt or die get lost in the shuffle. Optimizing emails and the web experience for a customer is essential for ensuring that lead translates into a transaction, whether in-store or online. If the mobile experience isn’t a good one, customers will go elsewhere, and could very well choose not to return.

How can laggard brands get involved in the mobile revolution? Step one is adapting the marketing plan  to include mobile initiatives. Following this, there are several approaches that can be taken. Below are a three I would recommend:

  • Test your emails for mobile devices or risk losing customers. Email is one of the biggest drivers to social networking sites. If subscribers have a negative experience with reading email on their mobile device, it’s highly unlikely they will follow through with the call to action to either visit the website or head to Facebook to “join the conversation”. Litmus is a great tool to help test your emails on mobile before hitting the send button.
  • Just as with social networks, mobile marketing is not the same as traditional marketing – so don’t treat them the same. What may work on a newspaper insert – let’s say, a QR code – will fail miserably in your mobile marketing efforts. Survey the mobile landscape  and decide marketing initiatives accordingly.
  • Use mobile to provide the link between online and in-store. Mobile coupons are easy to create and easy to use. Even mobile users that don’t own a smartphone can be rewarded through mobile via text message that can provide a code for in-store redemption. Offering an incentive through mobile both increases the likelihood of in-store purchases, it also allows for easier measurement of the successes of mobile marketing efforts.

Though mobile marketing is nothing new, there’s nothing wrong with getting into the game a little late. What is a travesty is a brand denying that the necessity is there.

What brands do you see the have successfully entered the mobile marketing realm?

 

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