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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After Article 50 is triggered, what happens next?

The UK must prepare for years, if not decades, of negotiating. 

Back in June, when Europe woke to the news of Brexit, the response was muted. “When I first emerged from my haze to go to the European Parliament there was a big sign saying ‘We will miss you’, which was sweet,” Labour MEP Seb Dance remembered at a European Parliament event in London. “The German car industry said we don’t want any disruption of trade.”

But according to Dance – best known for holding up a “He’s Lying” sign behind Nigel Farage’s head – the mood has hardened with the passing months.

The UK is seen as demanding. The Prime Minister’s repeated refusal to guarantee EU citizens’ rights is viewed as toxic. The German car manufacturers now say the EU is more important than British trade. “I am afraid that bonhomie has evaporated,” Dance said. 

On 31 March the UK will trigger Article 50. Doing so will end our period of national soul-searching and begin the formal process of divorce. So what next?

The European Parliament will have its say

In the EU, just as in the UK, the European Parliament will not be the lead negotiator. But it is nevertheless very powerful, because MEPs can vote on the final Brexit deal, and wield, in effect, a veto.

The Parliament’s chief negotiator is Guy Verhofstadt, a committed European who has previously given Remoaners hope with a plan to offer them EU passports. Expect them to tune in en masse to watch when this idea is revived in April (it’s unlikely to succeed, but MEPs want to discuss the principle). 

After Article 50 is triggered, Dance expects MEPs to draw up a resolution setting out its red lines in the Brexit negotiations, and present this to the European Commission.

The European Commission will spearhead negotiations

Although the Parliament may provide the most drama, it is the European Commission, which manages the day-to-day business of the EU, which will lead negotiations. The EU’s chief negotiator is Michel Barnier. 

Barnier is a member of the pan-EU European People’s Party, like Jean-Claude Juncker and German Chancellor Angela Merkel. He has said of the negotiations: “We are ready. Keep calm and negotiate.”

This will be a “deal” of two halves

The Brexit divorce is expected to take 16 to 18 months from March (although this is simply guesswork), which could mean Britain officially Brexits at the start of 2019.

But here’s the thing. The divorce is likely to focus on settling up bills and – hopefully – agreeing a transitional arrangement. This is because the real deal that will shape Britain’s future outside the EU is the trade deal. And there’s no deadline on that. 

As Dance put it: “The duration of that trade agreement will exceed the life of the current Parliament, and might exceed the life of the next as well.”

The trade agreement may look a bit like Ceta

The European Parliament has just approved the Comprehensive Economic and Trade Agreement (Ceta) with Canada, a mammoth trade deal which has taken eight years to negotiate. 

One of the main stumbling points in trade deals is agreeing on similar regulatory standards. The UK currently shares regulations with the rest of the UK, so this should speed up the process.

But another obstacle is that national or regional parliaments can vote against a trade deal. In October, the rebellious Belgian region of Wallonia nearly destroyed Ceta. An EU-UK deal would be far more politically sensitive. 

The only way is forward

Lawyers working for the campaign group The People’s Challenge have argued that it will legally be possible for the UK Parliament to revoke Article 50 if the choice is between a terrible deal and no deal at all. 

But other constitutional experts think this is highly unlikely to work – unless a penitent Britain can persuade the rest of the EU to agree to turn back the clock. 

Davor Jancic, who lectures on EU law at Queen Mary University of London, believes Article 50 is irrevocable. 

Jeff King, a professor of law at University College London, is also doubtful, but has this kernel of hope for all the Remainers out there:

“No EU law scholar has suggested that with the agreement of the other 27 member states you cannot allow a member state to withdraw its notice.”

Good luck chanting that at a march. 

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