Brands being Embrace by Mobile Advertising

Everyone has a phone; we all know the stats – more and more people have mobiles and use them for more and more things. In many markets there are more SIM cards than people and the way people use their phones continues to evolve – it is the way in which people use their mobile phones that is of real interest, especially to advertisers.

What is the difference between performance advertising and brand advertising? The performance advertising is about extracting an action, normally measured through conversion where as brand advertising is about engagement, covering a variety of metrics such as dwell time, interaction and vision ability.

Proviso you’re up to date with your marketing theory, we expect you already knew this. And if you’re on the ball with marketing reality, you’ll also know that until fairly recently, mobile advertising has been mostly about performance advertising, targeting easily measurable actions such as app downloads or clicks. This is because, among such a huge amount of complexity, it’s the one metric that everyone feels they can measure and compare against.

However increasing marketers are realizing that clicks don’t measure an ad’s impact or audience accurately. While you do get insight into volumes of response, you don’t know much about the nuances. You get no insight into how long they spent with the ad, or whether they took any other actions such as launching a video or progressing to a mobile site landing page, or their propensity to spend their hard-earned cash.

Brand advertisers love engagement: the longer someone spends with their brand, the better. ‘Digital’ means ‘interactive’, so we can start pushing down the marketing funnel and look at engagement. The more someone enjoys playing with their brand, for example by being exposed to rich media ads that they can interact with, the better still.

In April 2013, Nielsen-owned Vizu published its Online Advertising Performance Outlook. It was found that 63 percent of marketers said they planned to increase spending on brand advertising. Moreover, 61 percent said they would be moving money away from direct response toward brand ad campaigns.

In July that year, particularly for mobile advertising, Velti released its State Of Mobile Advertising report that showed direct response type advertising was deteriorating while the more audience-based campaigns typical of brand advertising were picking up. This was demonstrated through larger ad units and cost-per-impression metrics rather than cost-per-click.

It means that brand advertisers are starting to gain confidence in mobile’s ability to deliver, and the big budgets will follow. This is why we’re seeing much more mobile advertising spend being invested in brand advertising.

There at Adfonic, they’re also seeing firm indications that brands are embracing mobile. They’ve, the joint venture between EE, O2 and Vodafone, recently announced that Tesco was its first beta display client, announced to the world by ExchangeWire as ‘They’ve Bids To Woo Brand Spend To Mobile With Verified First-Party Data‘. Certainly they see the combination of a Mobile Network Operator’s audience data plus a Demand-side Platform (DSP) as an attractive proposition for big brands.

Recent developments in ad tech may also be contributing to the rise of brand awareness in mobile. Only last month Apple started rejecting apps that used its IDentifier for Advertising (IDFA) but did not then serve ads. There is a school of opinion that believes this is Apple hastening the end of deterministic targeting through an identifier, perhaps for privacy reasons.

Whatsoever the real reason is, this would be a strong signal to brands who believe their rich first-party data is part of the mobile advertising solution. Now, this is where brands really can succeed in mobile advertising. They have huge amounts of high quality, first-party data which describes the audiences they want to reach. This makes the ads audiences see mobile ads that are much more tailored to them individually – and, as a result, more likely to engage.

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