Consumers have accepted advertising online, but targeted mobile ads? Not so much

Mobile advertising has up to now relied upon massive campaigns with poor results. There is a belief you cannot intelligently advertise on mobile, but now more than ever, this is simply untrue.

Last month eMarketer revealed it is expecting the global smartphone audience to surpass 1.75 billion in 2014. It also stated that 4.55 billion people are predicted to use a mobile phone in 2014, thanks to increased availability in the developing regions of Asia-Pacific, the Middle East and Africa.

Tell these stats to an advertiser responsible for mobile advertising and watch their faces light up. A platform is now available that brings a potential audience of billions of users – more than Facebook and Twitter combined – and it’s growing. The opportunity to reach such massive audiences is gold dust to the advertising industry.

They are looking to take advantage too. Gartner revealed that global mobile ad spending is forecast to reach $18.0 billion in 2014, up from the estimated $13.1 billion in 2013. It also expects the market to grow to $41.9 billion by 2017.

It is undoubtedly a booming market. Yet there is a real problem.

In the past five years, online advertising has become incredibly intelligent. We are now at the stage where ads can be served based on what consumers are sharing and talking about. Sharing has become something of a phenomenon and can come in all forms, whether it be a tweet, a shortened URL, even an email telling someone to look at a link. Advertisers are increasingly able to build profiles of people, based on their interests and what they are sharing across the Open Web, and serving relevant ads accordingly at to scale. Consumers have reacted well. They understand that they are going to be served ads online these days – it’s what makes the internet tick – so they may as well be useful.

However, the same can’t be said for mobile devices. There is a distinct lack of “intelligent advertising” on this platform, and when you consider Gartner’s figures and projections, it is a costly miss. Without doubt, an archaic approach to advertising still exists. By that, I mean that advertisers have reverted to the “clusterbomb” approach of advertising – no analysis or resesarch of whether the user is interested in your brand and may be likely to click through, research and even invest, but rather putting out as many ads as possible in the hope that some people will bite. It’s an incredibly expensive way of getting your message out there. And if anything, it can be detrimental – consumers, who expect relevant marketing messages, are likely to be irritated by intrusive, non-relevant ads, especially as they are increasingly seeing marketing messages tailored to their interests. It reeks of the early days of online advertising, where you received ads for something you had no interest in whatsoever.

Let me give you an example. Last year, I got pretty hooked on an app called Stick Tennis. A very simple game, but highly addictive. In between each set, I would be served an ad. On numerous occasions, I was served an ad for Wonga. I wouldn’t dream of using a service like Wonga. Not in a million years. Frustration aside, it did make me realise two things. Firstly, brands are frittering away significant and precious budgets on advertising that is going to provide a minimal return. Put bluntly, it’s a complete waste. Secondly, there seems to be a level of thought that you can’t replicate the level of targeting on mobile that you can on desktop. But that is simply not true.

There are so many opportunities for advertisers and agencies alike to reach the huge number of mobile users, especially through apps. This is another economy which is continuing to grow and grow. Last year, APPNATION forecasted that revenue from apps is to continue to expand over the next four years and that, by 2017, the market will be worth over $150 billion – more than twice what it was worth in 2012. This naturally implies more apps being created and crucially, more consumer use.

Apps can be a hugely powerful communications tool and can help marketers get to know their potential audiences even better. This then brings considerably more opportunity to serve them more targeted messages, which results in more click-throughs and, ultimately, more sales. For example, use of a football app may drop off between seasons – leading to missed advertising and marketing opportunities within the app.

However, we are at the stage where brands can implement appropriate in-app tracking. This enables them to understand how users behave and therefore intelligently segment an audience, identify supported teams and so on. Relevant and bespoke news alerts and messages can then be driven through push notifications to engaged users. This, in turn, exposes them to mobile advertising while simultaneously providing a better user experience and hence more opportunities to up-sell. And, as consumers’ behaviour and reactions to mobile advertising can be tracked, it brings the opportunity to set up personalised ads in the future in order to re-engage them further down the line, thus keeping the cycle turning.

This methodology can naturally be applied across every sector, not just football. The opportunity for advertisers to take advantage of mobile is therefore enormous, as the technology now exists to serve relevant ads at the right time and at scale, making the process of just blasting out ads and hoping for the best a thing of the past. Those that add this layer of intelligence to their mobile strategies now are going to be the ones that stop the slew of wastage and truly reap the benefits.

Rupert Staines is European MD of RadiumOne

The global smartphone audience is expected to surpass 1.75 billion in 2014. Photograph: Getty Images.

Rupert Staines is European Managing Director at RadiumOne

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5 scenarios that will definitely happen in Ukip Britain

The Ukip general election 2017 manifesto is out. 

On 8 June 2017, Ukip defied expectations and pulled off a 392 majority in the general election. Prime Minister Paul Nuttall swiftly enacted his manifesto pledges – all 63 pages of them.

Now, thanks to Ukip, Britons no longer have to worry about silly things like the EU and multiculturalism. But not everyone has managed to adjust immediately to the Brexit paradise.

1. The beekeeper

Tommy knew right away his bees weren’t happy. They were swarming all over him, buzzing like a razor on a rampage, ready to sting. It was just as well he was wearing his beekeeping suit.

Except, wait a minute? Hadn’t the new Ukip government banned face coverings? Tommy was proud of being a law-abiding citizen. As he slowly removed his protective helmet, he shouted a parting message to his wife: “Enjoy our British honey when I’m gone.”

2. The job

“Thanks for coming,” Martin said to the three job applicants sitting in the glass-walled office. “I’m looking for someone who will be able to monitor the world’s FX markets, and identify any kind of insider trading.”

“I did my PhD in fraudulent FX and spent the last ten years tracking white collar criminals down,” said Gretchen.

“I’m a former trader who worked at three different central banks and makes my own beer on the side,” said Pierre.

“I’m young, unemployed, have no real qualifications to speak of and am under the age of 25,” said Stu. “I’m British.”

Martin shook Stu’s hand. “Welcome aboard,” he said.

3. The rescue

Stanley dodged the falling buildings as he made his way to the harbour, where a red-faced man in khaki was standing looking confused.

“Have you brought vital supplies?” Stanley shouted over the rumble of the earthquake.

“I’m from Britain and I’ve got nosh,” the man said.

“Nosh?” Stanley repeated. “What kind of country sends snacks to an impoverished country in the middle of an earthquake?”

“It’s the Naval Ocean-Going Surgical Hospital,” the man said. “We scrapped our foreign aid target.”

“Oh fuck off,” said Stanley.

4. The family

Helen knew something was different as soon as she stepped inside her parents’ house. “What have you changed this time?” she asked her octogenarian mother. “Is it the cushions? Did you give the door a fresh coat of paint?”

“No, darling,” her father said. “We just installed a sauna and hot tub complex along with an outdoor pool.”

Helen scratched her head. “I know Ukip has kept the triple lock pension guarantee,” she said. “But how can you possibly afford it?”

Her parents giggled so hard Helen began to worry they were having seizures. “Haven’t you heard of inheritable mortgages?” her mother managed to say. “One day, all this debt will be yours.”

5. The clouds

Ronald rubbed his eyes, and peered through the window again. No, he wasn’t seeing things. There was no sun. He stepped out of the house and stared at the sky. Where the bloody hell was it?

Then he remembered the referendum the month before. It had asked Gibraltarians if they wanted to be truly British, and he had ticked yes.

It began to rain.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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