Why Mobile Ads Are Effective
For several years now, we’ve seen an increase in the number of advertisements presented to us via mobile apps. These mobile ads have become a powerful tool for marketers, and they will continue to be effective so long as users become more comfortable using mobile devices. Here’s why we think mobile advertisements will continue their upward trend in 2015.
There’s a common misconception that many marketers have regarding mobile ads, and that is that they do not work. The reality is that mobile ads are effective and we’ll take a look at why they’ve been effective.
These days, society uses mobile devices for everything. Whether you need to pay your bills or you need to find the closest sushi restaurant, our mobile devices provide us with answers to just about anything. Companies took note of this and seized the opportunity by implementing advertisements into mobile applications. For some time, advertisers were not sure of the effectiveness of these mobile ads to generate conversions, but new research contradicts this notion.
Advertisements on mobile devices can come in two forms, through mobile websites and mobile apps. Mobile websites are just replicas of that same website on a desktop, so there is no additional work required to implement these ads. Nowadays, ads are being implemented in mobile apps. Studies show that ads in mobile apps have more than double the click through rate of ads in mobile websites. To decipher this information further, the study observed that tablet devices had a 44% higher click through rate than handset devices.
Tablets were shown to have a 0.59% click through rate, mobile devices 0.41%, and desktops have 0.2%. This data suggests that mobile devices have more than double the click through rate of desktops, meaning mobile ads are indeed effective. Let’s take a look at some of the trends exhibited by mobile ads.
While every industry has some sort of mobile advertisement, the two industries that reap the highest benefits from mobile ads are entertainment and travel. These two industries exhibited a 60% higher click through rate than companies that are in retail, automotive, and other industries. Many companies have incorporated video ads, but these have been shown to be ineffective, as over two-thirds of users will skip video advertisements before watching the whole video. However, it was found that 80% of users will watch the first three quarters of the video ad, even though just a third will watch the entire video. So, if you do incorporate a video ad, make sure to include the promotion or the call to action in the first half of the video.
Programmatic advertisements have also become a huge part of mobile ads. These automated advertisements have been big for desktop advertising, but they’ve been booming onto the mobile scene in recent months. Demand-side platforms have allowed advertisers to manage their mobile ad campaigns using just one interface. Ad impressions from these DSPs have grown over 500% in this last year.
It is important to note that the gap between the amount of money spent by advertisers on mobile ads and the time users spend on mobile devices is getting narrower. As more people use mobile devices for all of their daily tasks, companies are investing more of their marketing budget into creating mobile ads. This trend will continue in 2015, so be prepared, and start planning your next marketing strategy.