More than ten percent of Internet traffic is now on mobile devices, but mobile advertising still only accounts for less than two percent of all U.S. marketing spending.
“Mobile advertising has been touted as the next big thing since Apple’s iPhone debuted in 2007,” reports the Wall Street Journal. “Yet the promise remained unfulfilled because marketing companies have to navigate consumers’ desires for privacy with the enticements mobile devices offer, such as fresh information about users’ location and spending habits.”
Because advertisers are slow to make the switch to mobile, ad rates have stayed relatively low.
“About half of all U.S. mobile ad spending goes toward search ads, more than the roughly 47 percent of total digital spending going into Web search, according to eMarketer. Google takes a 95 percent share of all mobile-search revenue in the U.S.,” notes the article.
Advertisers are attempting to create experiences that are useful or fun. Others have started taking advantage of increased smartphone screen sizes with “takeovers” that briefly fill most if not all of the screen. This technique should be used sparingly though, marketers say, because consumers may get annoyed.
Placing ads in unfamiliar places is another method to overcome “ad blindness.” Although it has had mixed results, Amazon sees some traction with its sleep-mode ads for its Kindle e-readers and tablets.
Lastly, “banner ads — the boxes or rectangular ads on many mobile websites or apps — are known as the ‘spray and pray’ approach. Marketers, consumers and companies all said these ads are cheap, crude and annoy mobile users. Still, banner ads account for nearly $2 of every $10 spent on U.S. mobile ads.”
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