Mobile Advertising: Benefits & Challenges

Instructor: Danielle Reed

Danielle works in digital marketing and advertising. She holds a bachelor's degree in English and an MBA.

In this lesson, we cover the benefits and challenges of digital advertising. Learn more about mobile advertising and why a company may or may not choose it as its marketing strategy in this lesson.

Mobile Advertising Is Growing

In the world of advertising, more and more spending is going into mobile spends. According to a report released by TechCrunch, 'mobile fueled the internet economy in 2016 with advertisers showing their confidence in digital to achieve their marketing goals.' In fact, a number of marketers are going from not just some mobile ads to all mobile ads. So, why are some companies switching to mobile while others are holding back? There are benefits and challenges to this form of mobile advertising. Mobile advertising is an ad type which appears on tablets, personal devices, and also smart phones.

Benefits of Mobile Advertising

Mobile advertising is far from just being a trend. This form of advertising is growing year over year because more users are on their phones making purchases and searching for services. Service and product based businesses turn to mobile ads for data availability, reach, cost, targeting, and ease of creating.

Save Money on Cost

Compared to traditional advertising, mobile costs significantly less. In the world of mobile, a company pays per click. This is referred to as cost per click or CPC. Until a user clicks on your ad and goes to your site, you do not owe for this ad. Traditional advertising is built on upfront costs which means you don't know the impact of your ad before you are signing the check for the campaign.

In cases of campaigns tracked by CPM or cost per thousand views, pricing is lower than other avenues of advertisement. CPM varies based on sector but according to a study released by Fisku, the average CPM rate for mobile was $1.46 compared to a CPM of $3.50 for PC ads.

Target Specific Audiences

A target audience is a group at which an advertising campaign is aimed. Mobile advertising allows you to narrow a target audience to specific groups of people more than other forms of ads. For example, when you put up a billboard on the side of the road an audience of people driving by the billboard is exposed to ad content. This is based on geography. In contrast, a mobile ad can have a set geographic audience with other demographics included like age, gender, and professional affiliations. A targeted audience has the potential to increase your return on investment significantly.

One User Profile

Along the same lines of the ability to target a specific audience is knowing their personal information is correct. Mobile phones usually have one user profile which is the digital representation of a user's identity. Unlike computers, mobile phones are typically not shared. This means you will not be targeting the wrong user on a mobile advertisement.

Create Ads with Ease

Although size of your screen can be a disadvantage, it is also a positive. Because the size of a mobile phone limits your content, it also makes it easy to create advertisements. Once a company has found a strong niche for ads, stick with just a few format changes for effective branding.

Challenges of Mobile Advertising

When is the last time you were surfing the internet on your phone and you saw an ad? It was probably just today! Did the advertisement make an impression on you? If it did not, you have already run across one of the major challenges of mobile advertising. Whether it is about the screen size, the formatting, or blocking, mobile ads face a number of challenges.

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