In Mary Meeker’s Internet Trends 2016 report, she highlights a $22 billion gap in mobile ad spend relative to time spent on mobile. Some marketers debate the magnitude of this gap, but most agree on this: mobile ad spend is going to increase dramatically in the near term. If everyone expands their mobile advertising presence as predicted, a few problems will grow in magnitude. Boost shares ideas on what Meeker’s report means for mobile advertisers.
1. Higher competition among mobile advertisers
This is not the first time a new media channel has grown in popularity, increasing advertiser competition. However, on mobile the available real estate and user attention spans are the smallest they’ve ever been and growth is happening at an accelerated rate. These changes mean that like never before, advertisers need to proactively approach issues like rising CPCs, high competition, and user engagement.
2. Increased ad fatigue on mobile
When you increase spend on mobile without also increasing the number of creatives in circulation, ad fatigue sets in faster. Ad fatigue is already an issue for many advertisers. But as spend increases, advertisers will need to become more proactive in refreshing and releasing new creative.
3. Lower user tolerance of mobile ads
If mobile advertising really were to increase by $22 billion dollars per year, that would more than double annual ad spend, essentially doubling the number of ads served. Individual mobile users are going to see more ads, and many will revolt. Already, Meeker has cited a 94% increase in mobile ad blocking year-over-year. Advertisers need to step up their game in the usefulness, emotional connection, and value their mobile ad creative has for users.
What can you do about it?
Ad targeting is already fairly robust and sophisticated on most mobile ad platforms; by and large advertisers are reaching the right people. So how can we as an industry and as individual advertisers avoid annoying users and compete to win with mobile?
It’s simple: We need better, more engaging, value-adding creative.
Meeker provides specifics around what makes better video creative, but most of these principles hold true with all types of creative.
Advertisers who deploy fresh creative to the right people at the right time stand to win big and will be rewarded with free campaign amplification: According to Meeker, image sharing has increased by about 50% from 2014 to 2015 on select platforms and this behavior is on an upward trajectory.
Where to go from here
The concept of compelling, emotionally evocative creative is great. But putting it into practice is a challenge. How do you produce it at scale? Many advertisers have trouble getting enough image and video creative to keep up with the current demand. Advertisers aren’t equipped to ramp up creative production to support rising mobile ad spend.
At Boost, we’ve been anticipating and building solutions around these problems for quite some time. Which is why we’ve developed our cloud-based, people-powered platform to help advertisers create, refresh, and manage compelling ad creative at scale. Reach out to us! We can help you prepare for the increasingly competitive mobile advertising landscape.