Is the New Age of Marketing Going Mobile?
With companies like Groupon conducting over 50% of their sales via mobile devices, more and more companies are beginning to rethink, or already restrategize their advertising efforts. What started on the radio, then the televison, and then the internet will now become a major part of our mobile world, ads.
Groupon has proven that mobile advertising is the future of the industry, however it is much more complicated than internet advertising. Even companies like Google, Apple, Facebook and Twitter are having difficult making the switch. Cookie-centralized tracking methods marketers have relied on for years are not available to them when dealing with the mobile ecosystems.
When a mobile user moves from one app to another, cookies aren't capable of tracking their behaviors, and behavior is what motivates companies to steer their advertising one way or another. Studies have showed that 88% of mobile use is performed while using downloaded applications, and 82% of tablet use is spent navigating apps - that is a lot of time that advertisers can take advantage of, but how?
Rebecca Lieb, digital marketing analyst for The Altimer Group says that a new industry will open up within the current advertising and marketing industries, an "audience network". This network will target user engagement and place advertisements across a broad range of apps using information from social networks and user behaviors.
Marketing manager Amit Shah who works for PayPal Media said "we would love to spend more of our budget on mobile ad networks, but that data just isn't there."
Mobile advertising is far from simple, it is a complex ballhame yet to be explored, let alone mastered. In 2014, mobile advertising is estimated to make up almost 75% of Groupons revenue, 46% of Beyond the Rack's revenue, but under 10% of revenue for a majority of major retailers.
The same user who spends 6.5 minutes browsing an online site will only spend 3.6 minutes on the same site via a mobile device. That is less time to analyze, less time to study, and less information advertisers can use. Mobile ad networks are still very much a work in progress, but companies who have yet begun to start looking into this new world of marketing are sure to fall behind, and quickly.