Marketers who took the mobile advertising plunge last year can rejoice – it only goes up from here. A report from eMarketer shows that mobile ad spending increased by 220% in the U.S. in 2012. In the next four years, the current $8.4 billion is projected to increase to nearly $37 billion by 2016.
This seemingly sudden surge in mobile popularity has actually been underway for a while. Modern life demands a constant connectivity, and the number of people who own a cell phone continues to rise. As of 2012, 88% of U.S. adults had one, and over half also used the phones to access the internet.
The impressiveness of the mobile ad market is demonstrated through the fact that smartphone sales recently overcame PC sales – setting historical records in the industry, as well as new precedents in digital marketing.
A major player in the mobile space, Google, is continuously working to improve the mobile ad consumer-experience – for example, they recently launched “confirmed clicks” to decrease accidental phone taps and improve mobile conversion rates. Facebook is a work-in-progress as well, although the payoff thus far has been immense, with 20% of their ad revenue coming from mobile.
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Your brand website and ads should be correctly optimized for mobile in order to take advantage of these growing opportunities. Components of an effective mobile advertising message are shown below, as further outlined in Google’s “Anatomy of an Ad.”
- Simple interface
- Touch interaction
- Location targeting
- Interstitials and overlays
- Social elements
- Video and animation
All of the above features will increase the success of your mobile ad. Social elements, video and animation will engage users, and a simple interface will ensure they can take the desired action. Certain customized aspects – such as location-targeting – are always necessary for local businesses and increasing physical traffic along with digital.
Location-based advertising often goes hand-in-hand with local searches. In fact, 71% of U.S. smartphone users have searched after seeing an ad, and 94% of consumers have searched for local information on their phone.
Of those consumers searching locally, 61% are specifically looking for a nearby business. For retailers with an optimized mobile site and ads, the benefits can be great – nearly three-fourths made purchases after searching.
Both mobile advertising and search are on the rise. Businesses looking to improve sales and customer acquisition need to begin testing now, to ensure success in mobile marketing this year.