Marketing executives and CIOs need to team up and focus their mobile advertising efforts on campaigns and apps designed for tablets in order to get the best ROI.
Mobile advertising revenue has been growing fast, according to a report from PricewaterhouseCoopers: Mobile advertising revenue accounted for 9% of FY 2012 Internet advertising revenues, or $3.4 billion, an 111% increase from the prior year. PwC analysts expect at least an 80% increase in mobile advertising revenue in 2013. Mobile has experienced triple-digit percentage growth each year since PwC started capturing it in 2010.
In its US Digital Future in Focus report, comScore says that “nearly 1 in every 3 digital media minutes are now spent on smartphones and tablets as we embark on the post-PC paradigm of this Brave New Digital World. With the majority of mobile content access occurring via apps, rather than the mobile web, a new dynamic has emerged among media companies and retailers in their competition for eyeballs and wallets.”
Tablets, with their larger screens, are a perfect medium for mobile advertising. Most smartphone users do not click on ads because they are too small, and many campaigns are wasting significant resources targeting those devices.
One advantage tablets offer for mobile advertisers is the lack of multi-window browsing on most devices. Most users concentrate their tablet consumption on one app at the time; that gives advertisers the full attention of the user. Another advantage is screen size; most tablets are sold with screen sizes ranging from seven inches to 10 inches, displaying the same resolution you can find on 17-inch to 21-inch computer monitors. But on tablets, advertisers don’t have to overcome the tendency of users to have several windows open side-by-side, as they would on their computer screens.
One significant demonstration of the value of tablets in mobile advertising is the cost per thousand impressions (CPM). While these numbers are still low compared with premium full-browser websites, CPMs on tablets are higher than on smartphones. Tablet CPMs are in the $1 to $1.50 range, depending on platform, and some apps claim even higher numbers.
Designing effective mobile advertising for tablets requires considerable understanding of how users interact with their devices, and consideration of the technological needs of each tablet platform. Mobile advertising represents the perfect meeting place for IT and marketing to come together and collaborate on a strategy that can improve enterprise revenue.
About the Author
Pablo Valerio is a contributor to EnterpriseEfficiency.com, a UBM Tech community.Tags: Mobility,Technology