10 Mobile Advertising Trends to Watch

Mobile and smartphone penetration in North America has reached 94.1%1- this is great news for mobile marketers. In its infancy, mobile ads started as simple text and picture messages, but over the past few years, we've seen this channel explode into a creative plethora of complex and engaging video and app ads that are getting through to customers better than ever before. There has never been a better time to get involved in mobile advertising - but it's a fast-paced environment, so try and keep up, and hang on tight!

In this article we'll take a look at some trends in mobile advertising we're seeing and make our predictions of things to watch out for in 2012. Let's get to it!

More Mediums

At present, mobile advertising can take many forms. From the simple SMS or MMS messages, interactive in-game/app ads, and even geo-location based deals; we're really only on the brink of what mobile advertising has to offer. In just the past few years, we've seen plenty of new and creative mobile ad placement strategies come to fruition, and as the smartphones capabilities increase, we expect this trend to continue.

Increased Revenue, More Ads, Cheaper Costs

Mobile advertising revenue is expected to double from 2010 to 2011 (and this trend is expected to continue1). With advertisers knocking at the door, and more and more competition using mobile advertising platforms, we're already seeing ad fill rates go up, cost per click go down, and impressions increasing. As mobile advertising becomes more mainstream, we expect costs to significantly decrease, and if the iAd platform is any indication (they've dropped their minimum ad buy twice from $1M to now only $300K2, we're bang on with this prediction.

Mobile Website Ads vs. App Ads

The question of advertising on the mobile web or mobile apps is becoming obsolete. With all the advertising platforms available (like Adsense, Admob, Smaato and Mojiva to name a few) it's becoming much easier to advertise on both mediums. With that said, we do expect the constant battle between these two mediums regarding click through rates and conversions to continue.

Custom-Designed Ads for all Resolutions

One particular challenge of mobile web advertising is sizing. Due to the small screen resolutions, ads are kept quite small, and click through rates suffer. When an iPad user visits the same page, the question then becomes - why does this ad need to be so small? We're seeing more and more mobile ads that are full-pages, regardless of screen resolution for this reason - this provides the best user experience, and we're expecting this trend to continue.

Clever QR Codes

QR codes are just starting to get mainstream adoption, and we've only started to tap into their true potential. Currently we're seeing QR codes used for contesting, coupons, and in other simple ways. Although we expect this trend to continue, we hope QR code capabilities will open up a whole new world of possibilities for marketers. For example, QR codes currently have the ability to send out texts to the phones of the individual who scans them. So... how far away are we from QR codes that act as opt-in's for text-based advertising, or even QR codes with ability to integrate with apps, such as iCal or Gmail?

More Video & TV Ads

We're seeing more and more unlimited data plans as mobile providers compete for your business. With this, we expect to see an increasing number of video ads, and with that, ads integrated with streaming video websites such as Youtube, CNN or The Comedy Network.

Geo-Location Ads & Deals

Facebook Deals and Foursquare are on the frontlines of geo-location, peer-reviewed advertising - and businesses are starting to reap the benefits. Although adoption has been slow, we expect to see steady growth for these platforms. These types of ads are relevant, timely, peer-recommended, and as expected, response rates are very high. We expect to see some new GPS deal platforms that alert customers of nearby deals in the near future as well.

Clever Interactive Ads

As consumers are getting more and more wise to marketing offers; advertisers are stepping up their game. Engaging / interactive advertising is already being used by Apple's iAd platform. This type of advertising is very cool - it's "game-like", but integrates well with anything on the Apple platform (pictures, social media, calendar etc.). We expect more marketers to flock to this channel in the near future.

Incentive Based App Ads

A free version of an app is the most common example of this type of mobile advertising. App developers give you basic features of an app for free in hopes you'll want full feature access once you get a taste. Angry Birds, takes this type of advertising to another level, they offer extra levels in their game in exchange for liking their Facebook page. Encouraging a specific behavior for virtual money is another example. Call it bribery advertising - but don't judge, it works.

Android Vs Apple

With Android platforms now supporting flash, expect to see some flash ads make an appearance on mobile devices.

What do you think?

What are your thoughts on the future of mobile advertising? We'd love to hear from you - connect with us on Twitter @GoRedengine.

Sources: 1http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats_ 2http://mashable.com/2011/07/07/apple-cuts-the-price-iads/