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Mobile Advertising Trends

The relevance of Mobile Advertising is rising. In recent years the market has become a billion-dollar business. The reason is obvious: Mobile Advertising allows companies to adress their (potential) customers as personally and directly as no other device.

We checked four current trends in Mobile Advertising for you:

Apple Search Ads

In August 2018, Apple finally launched its Search Ads in Germany. Search Ads allow app producer to push their visibility in the App Store through paid media. The ads are highlighted with a lightblue ad-icon and appear at the top of the users search request.

The fact that Apple Search Ads will be displayed according to the user’s relevance should increase the conversion rate. But there are still small companies which have to rely on organic growth because they cannot afford paid media. For those companies, the ads might have a decreasing effect on their conversion rate, because Apple places paid ads in first position even before the regular, organic search results.

But how does that work?
After the customer (app producer) created a new campaign with “Search Ads Advanced”, relevant keywords can be defined. The search match tool also helps to find suitable search terms. Subsequently, the target group and the required devices have to be set. The creation of the ad is based on the metadata and the design of the product page. Ad sets also let you create different themes for different audiences or topics. Advertisers pay per click or per install. An analysis section helps to examine the performance of the ads and to optimize them if necessary.

Mobile Videos Ads

68 percent of OWM-based advertisers want to increase their online video spend in 2018. 85 percent of the members of “Fachkreis Online.Mediaagenturen im BVDW” believe, that online video will be very significant in the future.
The combination of the relevance of online video and the fact, that the smartphone usage is rising shows, that mobile video ads are indispensable. Furthermore, a recent GfK study, instructed by facebook, reveal, that mobile video ads are very effective. 60 percent of all online videos are consumed on mobile devices and the amount is still rising. The study proves the effectiveness of mobile video creations: Eight of ten campaigns examined a significant increase in sales after having contact with video ads on Facebook. The probability of purchase increased by an average of 13 percent. This influence was even higher at first-time buyers with an average of 34 percent. Stephan Pirsch, Head of Digital & Content Marketing from the agency Mhoch4 indicates, that the majority of mobile videos is watched is in-app traffic and does not happen on mobile enabled websites. Therefore, he adds that a company’s mobile strategy should match its channel strategy. Each target group should be addressed with a fitting channel (e.g. Facebook, YouTube, Snapchat, Instagram, Instagram TV), a fitting ad format (e.g. Story, Horizontal Video, Vertical Video) and the right timing.
To produce mobile videos ads successfully, Facebook recommends producing short videos of 15 seconds or less. Besides it is important to attract the user’s attention right in the beginning of the video. A clear message of the video should be pointed out in the first seconds of the video.

In-App-Advertising

As mentioned before, most of the online videos are watched in-app. But we can generalize it: Users spend most of their screentime in-app. That’s why the entire market for in-app advertising is growing very fast. Providers, specialized in in-app advertising, such as Smaato or Pubmatic, are therefore regularly announcing new record figures. The spendings on in-app advertising on the Smaato platform rose by 48 percent in the first half of the year in Germany. Worldwide they could record an increase of 107 percent of ad requests. Pubmatic also describes in-app advertising as the driving force behind the growth in mobile advertising. According to a recent Pubmatic report, in-app advertising already amounts more than half of all mobile advertising spendings.

In-app advertising implicates two major trends: On the one hand, the programmatic booking and the running of classic mobile banners within the apps. On the other hand, there are also exclusive app presenterships in which large brands run fullscreen mobile interstitial ads when the user starts an app.

Native Advertising / Branded Content

Apps like Kitchen Stories or Lovoo set a good example: They offer brands the opportunity to promote their products without seeming like clumsy advertising.
For example, the Lovoo dating app offers advertisers a sponsored challenge: a photo contest in which thousands of participants upload photos on a specific topic. The best entries will be rewarded with various incentives. Lovoo also promotes their so-called Match Ad. A company’s product can be promoted while user is playing the Lovoo Match Game. Through the playful integration of the ad users are quickly enticed to click. The fitness magazine Men’s Health has already used this form of advertising.
The cooking app Kitchen Stories cooperates with brands that offer app creators individual content marketing options in a video-based context.
That means, products like certain kitchen utensils or cooking ingredients can be integrated naturally in cooking videos.
Kitchen Stories also offers brands to develop and distribute special recipes for them. Brands, such as Alpro Soja or Nespresso, have already used this option – and the domestic appliance manufacturer BSH (Bosch) has even become a major investor.

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