Business owners and marketers have been paying more and more attention to the potential mobile devices. This change is a natural response to the growth in the number of mobile devices and advances in the mobile web. However, a new study suggests that growth in the mobile web and the way people use smartphones and tablets make mobile marketing a necessary tool for modern businesses.
Real time ad platform Smaato analyzed billions of mobile ad impressions served through June of 2015 and found that spending on the mobile web increased by 100% over the past year. The data also indicated that ad spending within the mobile web has increased by more than a third (38%). The data also showed a significant shift away from advertising on apps and more ads on mobile sites and video ads. According to the report, spending in the app space has decreased by 62 percent.
“The shift to mobile began with the mobile web – and then apps took over,” said Ragnar Kruse, CEO of Smaato according to a press release. “Although we can’t say for sure whether we’re looking at a huge comeback of the medium, the fact remains that publishers and advertisers can’t afford to ignore the mobile web. Mobile ad strategies – whether it be the size of ads or the use of rich media – must be created with both app and mobile web usage in mind.
The report also gave some good advice for app developers and content publishers who want to improve the quality of the content. For example, personalizing the brand can make a big difference. According to the report, app developers and publishers who provide age and gender information make four times as much in ad revenues as those who don’t. Similarly, publishers and app developers who use rich media in their apps and on their websites make 83 percent more money than those who don’t.
The most popular ad formats were larger ads according to the amount of growth. Spending on larger ads (300px X 250px) increased 250 percent compared to 2014, whereas app-only sized ads (320px X5 0px) increased only 30 percent. These changes in the types of ads served to viewers reflects the changes in the way people are accessing content. As more people use mobile websites instead of apps, mobile ads will grow more slowly.
Getting customers to download and use apps can help content publishers by making it easier to get content to consumers and increases the revenue from ads. The study also had data on how the apps are fairing. Despite the monumental growth on mobile websites, apps still account for 57 percent of mobile ad impressions.
With the large number of devices running Android, it makes sense that Android apps continue to lead the pack with nearly a third (32%) of the overall ad impression market. iOS apps come in second with 20 percent though it’s important to remember that iOS users are known to generate more revenue for content publishers and business owners than Android users. And given Windows late entry into the smartphone mobile market, Windows apps are doing well to have the 5 percent share of the mobile impression market that they do.
The researchers also noted where these ad impressions are coming from. This information can help content publishers know where to target their content. The United States is still the main supplier of ad impressions, but other countries around the world are seeing great gains. The US leads in mobile ad spending but China more than tripled (315% increase) its year-over year ad spending YoY and India increased spending almost three fold (279%).
Finally, the researchers also found that advertisers are doubling down on targeting families and parents on mobile. Spending on this demographic increased by over 300 percent over the past year, while the second most lucrative vertical only rose by 87 percent. This focus on family will increase as more kids get start using mobile devices. The researchers cited data from Common Sense Media which found that 72 percent of kids eight and under have used tablets or smartphones.
For more research on how mobile marketing is changing the economy, read this article on Millennials are using mobile devices.