WHY MOBILE IS THE NEXTBIG THING IN ADVERTISING

By Newton Zheng, Digital Marketer

cc:RobertMehlan - Munich–https://www.flickr.com/photos/33349402@N06

Mobile advertising is a method of advertising that appears on mobile devices such as smart phones

and tablets. Advertising can be in the form of banner advertisements that appear embedded in a

mobile web site or in downloaded apps [1]

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With so many options, advertisers are constantly looking for the best

advertising medium. Of all these mediums, mobile is expected to become

dominant in the upcoming years [2]cc:AGmakonts -https://www.flickr.com/photos/51780704@N05

4 REASONS FOR THE RISE OF MOBILE ADVERTISING

1. More people now have and use mobile devices

2. Large opportunity for growth3. Affordable & effective medium4. Real-time marketing

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#1: MORE PEOPLE NOW HAVE AND USE MOBILE DEVICES

9 out of 10 people in North America own a cellphone [3]cc:gareth1953CataractCreatingChaos- https://www.flickr.com/photos/40837632@N05

In Canada, 67% of Canadians own a Smartphone, up from 34% four years ago [4, 5]

cc:Hindrik S- https://www.flickr.com/photos/63991153@N00

We check our Smartphones 150 times per day [6]

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Our Smartphones are now integrated into nearly every aspect of our lives,

like an extension of our body [6]

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#2: LARGE OPPORTUNITY FOR GROWTH

Mobile will grow more than two times faster than all other advertising mediums in the next 5 years [7]

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Mobile advertising revenue in the U.S.

will grow by a five-year

compounded annual growth rate

of 42.6% to $42 billion by 2018 [7]

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Meanwhile, traditional advertising mediums continues to decline. For example, TV and radio advertising revenue will decrease by a five-year

compound annual rate of -2.8% and -16.8% respectively [7]

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In the U.S, 24% of the time spent on media consumption is on mobile while only 8% of

advertising spending is on mobile, creating $25 billion in open opportunity for unsaturated

advertising [8]cc:peasap - https://www.flickr.com/photos/21314760@N00

By comparison, 37% of the time spent on media consumption is on TV, but 41% of

advertising spending is already spent on TV, making TV advertising very competitive and

expensive [8]

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#3: AFFORDABLE & EFFECTIVE

Example: Advertisers pay Kiip, a mobile advertising platform, only when a consumer accepts an advertising offer, with fees ranging

from 25 cents to $3 per interaction [9]cc:LendingMemo - https://www.flickr.com/photos/92802060@N06

By comparison to a traditional outlet, television advertisements have limited spots with high expenses. One 30 second advertisement on

national television costs an average of $342,000 and the impact of the advertisement can vary [10]

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Not only is mobile advertising is affordable, it can also offer high engagement rates, making it very

effective [11]

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Mobile app advertising platforms such as Kiipoffers a 20-25% engagement rate. This is the percentage of viewers who saw the offer and clicked through, going on to enter their e-mail

address or other information [11]

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#4: REAL-TIME MARKETING

Many phones now come with location-tracking features, such as iBeacon. This allows third-party apps to know when you enter a

store, where you go, what you look at, and when you leave [12, 13]cc:a4gpa- https://www.flickr.com/photos/94833286@N00

The availability of location based data from mobile devices is a major advantage for marketers. For instance, when advertisements are shown for a store to a potential customer nearby, they are able

to boost store traffic by 40% [13]cc:Ktoine - https://www.flickr.com/photos/49170045@N07

“Location unlocks the many rich layers of data which marketers can analyze, such as weather, local events, and demographics, to get a full

picture of what is going on at a certain location in real-time” - Ran Ben-Yair [14]

cc:mikecogh - https://www.flickr.com/photos/89165847@N00

“Mixing and matching these several ‘real world’ data layers allows marketers to create content for dynamic,

on-the-go audiences. Combining all these data layers to find the right audience for your message is what makes in-app advertising truly effective” - Ran Ben-Yair [14]

cc:dbtelford -https://www.flickr.com/photos/49432141@N00

Unlike traditional advertising mediums such as newspapers, magazines, television, and radio, mobile advertising offers advantages such as the potential to reach the right consumers at

any time and any place [15]

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CONCLUSIONMobile will rise as a dominant medium for advertising due to the increased

usage of mobile devices, the large opportunity for growth, the returnon investment, and the unique real-time marketing opportunities. With so many reasons, now is the chance for you to take advantage of this unique

opportunity to help your company to grow.

cc:ThomasHawk- https://www.flickr.com/photos/51035555243@N01

Do you need help with creating a mobile advertising campaign? I am here to help. Contact me at

Newton@ePropel.ca and let’s get startedcc:flazingo_photos -https://www.flickr.com/photos/124247024@N07

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cc:Iwan Gabovitch - https://www.flickr.com/photos/21051491@N02