Key Opportunities and Challenges in Mobile Advertising

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Discussions on ‘mobile’ are a hot topic at informal chats and marketing and advertising specialized media worldwide. We are on the brink of new discoveries, concerned about how people and business will use what once was ‘just’ a mobile phone.

As often happens on the startup of new high-impact media, there are loads of opportunities not yet explored. OvermediaCast believes this is the time in advertisers’ strategy to use mobile data to change consumer behavior, influence their actions and maximize their results.

This post opens a series of discussions about the future of mobile marketing. Let’s start unlocking, the main opportunities and challenges surrounding this new media.

Opportunities in Mobile Advertising

The mobile revolution, rapidly changed consumer behavior, creating a new mass media channel in which video emerges as a top trend. See why brands need to extend their reach to create a compelling mobile presence:

  • More than 1 billion people watch online videos from their mobile devices [1].
  • On mobile devices, 55% of consumers prefer to communicate with brands through vídeos. It is the number one format in major advertising markets worldwide [2].
  • By 2018, video will represent 69% of all global mobile data traffic [3].

Reach a huge audience

Mobile Ads’ Top Challenges

The chart above shows that are immense opportunities for major brands, however, advertisers are still struggling to capture value in this situation:

  • Mobile advertising takes only 4% of ads budget, versus 20% of total customer engagement [4].
  • Only one third of the top 100 UK brands have mobile presence [5]; in Brazil the deficit reaches two thirds [6].

A recent study published on Adweek [7] reveals the key mobile advertising challenges:

Screen Shot 2014-08-31 at 17.07.19

  • Creative production

    • The production of creatives that overcomes the limitations of screen size and works across the fragmented mobile landscape.
  • Targeting

    • Advertisers want to reach all the right people, who matter to them, at the right time.
  • Audience tracking

    • Monitor and learn how consumers access and consume mobile media.
    • Identify and characterize the audience and the viewers individually, based on demographics and psychographics data.
  • Common metrics

    • Bridge the gap between TV and mobile video by enabling advertisers and agencies to plan, buy and measure video across screens on a comparable basis
    • Be able to measure these metrics with precision along the fragmented mobile landscape.

Overcome these points will help advertisers and their agencies to solve the two major priorities of marketers, according to a recent study published by AdAge [8]:

  • Maximize ROI and,
  • Improve the digital market efforts

What about you? What are the main problems that your brand finds in mobile advertising?

Related post:

Telefónica Vivo partners with OvermediaCast to launch mobile interactive videos

 

References

[1] eMarketer, Smartphone Users Worldwide Will Total 1.75 Billion in 2014, 16/01/2014. Available on: http://www.emarketer.com/Article/Smartphone-Users-Worldwide-Will-Total-175-Billion-2014/1010536. eMarketer, Tablets Challenge PCs as Leading Digital Video Channel in the US, 01/05/2014. Available on: http://www.emarketer.com/Article/Tablets-Challenge-PCs-Leading-Digital-Video-Channel-US/1010807.

[2] eMarketer, Video Leads Consumer Preference for Mobile Ads in Brazil, 14/03/2014. Available on: http://www.emarketer.com/Article/Video-Leads-Consumer-Preference-Mobile-Ads-Brazil/1010680.

[3] Cisco, Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2013–2018, 05/02/2014. Available on: http://www.cisco.com/c/en/us/solutions/collateral/service-provider/visual-networking-index-vni/white_paper_c11-520862.html

[4] Meeker, Mary. Internet Trends 2014 – Code Conference, KPCG, 28/05/2014. Available on: http://www.kpcb.com/internet-trends.

[5] IAB UK, IAB UK launches first European mobile optimisation study, published in 23/04/2014. Available on: http://www.iabuk.net/about/press/archive/iab-uk-launches-first-european-mobile-optimisation-study.

[6] Mobility Index, 26/04/2014. Available on: http://www.slideshare.net/pontomobi/mobility-index.

[7] Adweek, Advertisers Are Struggling to Keep Up as Spending Shifts to Mobile Obstacles include a lack of tech, skills and insights. Published in 30/07/2014. Available on: http://www.adweek.com/news/advertising-branding/advertisers-are-struggling-keep-spending-shifts-mobile-159143.

[8] AdAge, Marketer’s top priorities revealed, AdvertisingAge. Published in 21/04/2014. Available on: http://brandedcontent.adage.com/leads/

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Daniel da Costa Uchôa

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