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Mobile Advertising and its Benefits

Mobile Advertising and its Benefits

Mobile ads are the advertising world’s answer to a consumer world that is hooked on to their phone screens or mobile gadgets. In layman terms, it is the type of product/services advertisement technique that you see on your smartphones.

Mobile phone advertising can occur as text-based ads, banner advertisements, videos or even as mobile games.


Mobile advertising is essentially a part of mobile marketing using traditional techniques and strategies to collect data. This may include consumer profiles, demographics, habits, preferences, etc.

So instead of going out and reaching your markets on the physical level (posters, banners), mobile advertising makes use of the popularity of smartphone devices.

The invention of mobile advertising has been revolutionary when it comes to marketing campaigns. Its reported benefits include a surge in customer engagement rates, cost-effectiveness, personalized consumer relationships, and social media friendliness.

In a world that has more number of mobile subscriptions than the human population, it would be ridiculous not to base your marketing game around it!

Current mobile advertising trends


Interactive Advertising Bureau states that mobile advertising has experienced a growth surge of 65% in 2014, which has since been growing by the day.

A report sourced from emarketer says “In 2019, worldwide digital ad spending will rise by 17.6% to $333.25 billion. That means that, for the first time, digital will account for roughly half of the global ad market.”

mobile advertising


Another IAB Internet Advertising Revenue Report, 2018 for the US states that “Mobiles contribute the maximum to the digital marketing’s steady growth and account for approximately two-thirds (65%) of 2018’s internet ad revenues. Mobile advertising revenue grew up to 40% from 2017 to 2018.”

Similarly, according to this article on Ad Age, “digital advertising had yet another record-breaking year in 2017, as ad revenue totaled $88 billion, a 21 percent upswing from 2016”.

Mobile advertising basics- Things you need to know


Here’s a list of some basics that you need to learn:

  1. The terminologies used:








  1. The mobile platforms used:





  1. The currency terminology being used: 



Advantages of mobile advertising

What makes mobile advertising so effective?


  4. Personalized advertising: Mobile advertisements have the unique advantage of tailoring the mobile user’s preference in marketing campaigns. Customers have the option to follow, like or even send in their own suggestions to their favorite brands through social platforms.

Types of Mobile Advertising



Following is a list of the most commonly used mobile advertising formats.

1. Banner advertising



Mobile advertising





2. Video advertising


Those FIGURES alone say a lot!




Mobile advertising



  • Keep it SIMPLE
  • Use your CREATIVITY
  • Keep it short and CRISP
  • The audio and visuals are NOT TOO LOUD
  • Display a CALL TO ACTION

3. Full-screen or interstitial mobile advertising

Interstitial advertisements are the full-screen videos or graphics that are usually placed at app transition points.

Say, for example, you are playing a video game. You’ve just managed to clear Level 1 and are ready to get your next game level loaded. That’s when you observe an image or a short video ad coming up. These are interstitial mobile ads.

mobile advertising

Interstitial mobile ads

Interstitial ads get high click percentages compared to banner ads. However, the rule that goes with interstitial ads is to display them ONLY at the interval points. The ads appear naturally between the content transition points so as not to interrupt the user activity flow.

Ad types may include text, graphics or rich media. Finally, users usually get a choice of closing the advertisement by clicking the X button (usually on the top right).

Since these ads take up the full screen or the majority of the screen space, they work well to grab consumer attention.

4. Native app-based advertising

Native ads are similar to the banners but are not conveyed directly, so as to be treated as advertisement content. The ads are displayed within the app’s natural environment of the mobile and hence blend in with the flow.

Since they’re embedded as a part of the mobile environment, they offer an advantage. They can not be blocked.

So, you get your advertisement displayed to targeted users without actually causing forced interruptions. The appearance, buttons, and design features are similar to other elements of the app.

mobile ad format native ads

Some key tips for creating high quality native mobile ads include adding the following key ingredients:

  • Headline
  • Crisp description
  • Brand logo or name
  • URL

A popular example of native mobile advertising is Facebook ads. Users scroll through their page/news feed and yet get to see ads embedded in between two news pieces.

5. Gamified mobile advertising

Gamified options are a type of interactive video or rich media advertisements. These are a favorite with savvy marketers who want to create interactive channels to advertise.

Games are a natural way to generate user interest. Gaming mobile advertisements work great when marketing apps. For example, if the app is about problem-solving or finding directions on a map, short and quick gaming videos that let the users do test it works great as an advertisement.

Gaming mobile advertising is a great way to engage customers at a basic level. These also work well to generate user data like consumer profiles, etc. Since game based learning is now being considered a highly evolved means of education by all sectors,  gamification based ads create high conversion rates since they manage to capture user attention.

A potential consumer involved in a challenging game is more likely to spend 10 or more seconds on the advertisement.

KEY NOTE: IAB’S internet advertising revenue reports state that all digital ad formats (mobile plus desktop) have shown the following growth in the year 2018:

  • Search: Total search ad revenue is up 19% to $22.8 billion
  • Banner: Total banner advertising is up 27% to $15.7 billion
  • Video: Total video advertising revenue is up 35% to $7 billion

Key Steps for Developing a Mobile Advertising Campaign


1. Establish the objectives




Some examples of objectives for a mobile advertising campaign could be:

  • Raise brand awareness
  • Generate “x” number of registrations
  • Get “x” number of mobile opt-ins
  • Get web traffic to the landing site
  • Getting “x” number of people for video gameplay
  • Increase sales to “x” figure
  • Add a targeted number of new clients per month
  • Advertise a promotional offer

2. Choosing your target audience


But just adding up the audience is not enough. You want to target a specific group of audience to be on top of your advertising game. It all starts with identifying who you want to target.


Identifying the target demographic areas can be done through telephonic surveys, text messages, and social media.

Most consumers react better to mobile advertisements that are customized for their locality. Targeting localized customers helps generate better conversions.

Studying a target group of potential consumers also helps to understand their mobile environments.

It is crucial to factor the viewing mindset of users.


Various online tools like Google Analytics can be used to gather target audience profiles.

3. Identifying the type of mobile ad you need



If you’re looking at generating a higher number of clicks, a regular banner advertisement can be used. When the target is to get high sales figures, creating a Video or YouTube-based ad that comes with a CTA link works well. Ensure that the CTA link directs consumers to the landing page that talks about your product.

Native ads work great when you need to promote an app-based product. A user when viewing the ad in the middle of their mobile activity will automatically get excited about installing the ad (of course, the services provided by the app should be fairly attractive).

Various other mobile-based games or apps that offer a video game prefer to use a gamification based mobile advertisement. As mentioned earlier, gamification ads create a high level of excitability and engagement amongst the users.


4. Decide the ad campaign length



  • User group preferences as observed from previously generated data.
  • Budget availability



5. Consider the targeted devices





6. Ad designing










7. Data management, reporting, and analysis



  • What is the type of user data available with you?
  • How will the mobile audience be segmented?
  • How are the tracking links set up?


  • User behavioral patterns
  • User’s engagement time
  • User visit frequency
  • Campaign’s overall contribution to the overall objective

8. Ad testing

So your ad is prepared and you’re ready to launch?



Mobile campaigns are usually tracked using two key attribution methodologies:

  • Unique Identified matching
  • Device Fingerprinting


Key Mobile Ad Strategies That Work

As mentioned earlier in the article, the 2019 mobile ad spending is predicted to account for approximately half of the global advertising market.

While the rapid growth of the industry is exciting, it has not been easy for brands to get their mobile ad campaign to work as they want. Since the medium is fairly new, it is not always easy to determine the strategies and tactics that work the best.


1. Incorporate modern versions of mobile ads

Mobile banner ads are the conventionally used ones by various global brands. While they still hold their popularity, it is time to think beyond banners. After all, “Banner ad blindness” is not an unknown term anymore!


A CTR analysis given by COULL tells gives us the following figures in terms of “click through rates” for various ad formats:

  • Display ads  0.35%
  • Native ads 1.37%
  • Video 11.8%
mobile advertising


While display advertisements like banner ads can be highly effective when directed to the right consumer groups at the right time, it is definitely time to include modern versions like native and video ads in your mobile ads spend.

2. Think Local

The share of local ad spend is projected to jump in the year 2020.

Ever wondered the reason behind the rapid growth?



3. Make use of the targeting options





4. Use Google and Facebook as your starting point

With the availability of multiple channels, it is often an overwhelming decision to make a choice on the most suitable ones for your mobile ad spend.

Mobile Advertising platforms like Google and Facebook offer huge advantages. They allow you to manage multiple mobile ad offerings at the same place. The platforms have been expanding their mobile ad offerings in the last few years. Things like Facebook’s Audience Network and Google Mobile App can be considered.

This doesn’t necessarily mean that your mobile ad spend ends here. There are various other hubs that you must seriously consider as you grow in business and get a better understanding of the mobile advertising world.

5. Reduce your ad loading time





Finally, try not to use incompatible technologies for ad serving.

– Remember, mobile ads need to meet certain pre-defined objectives. Ensure that your ads are as informative as possible. Adding phone numbers, email ids is a great way to do that. Consumers who like your add look for a quick way to get more information. Keep your “tap to call” button visible and attractive. 

Other techniques like providing incentives through ads work great when you want to attract more users and generate leads. Everyone loves free stuff. A discount coupon, a gift card or any other incentive format are good ways to do so. 

For more comprehensive information on mobile strategies, consider reading our article on “7 Mobile Advertising Strategies for Better Conversions”. 

Mobile Advertising Costs

So, how do we get to decide a reasonable ad budget?


How much does mobile advertising cost?

Determining the right spend is definitely not as simple as it sounds. According to a report by emarketer for mobile internet ad spending worldwide, it has grown from 19.20 billion dollars in 2013 to 195.55 billion dollars in 2019! That’s gigantic!

mobile advertising spend

Mobile Internet Ad Spending Worldwide, 2013-2019 ©emarketer.com

Tracking mobile ad expenditures is done via methods like CPS, CPA, and CPM.

Cost per Click

Advertising networks usually ask advertisers to bid for their CPC. A smaller niche usually receives a higher price for a single click.

Cost per Action

Ad formats like banner ads or video ads do not really focus on clicks to get conversions. Sometimes, companies build their campaigns with objectives like “x” number of app installments, “x” number of sign-ups, etc. These is the CPA.

This mode of payment is also dependent on the niche and the quality of the ad created. CPA is the total ad campaign cost divided by the number of actions received.

Cost per mile OR Cost per thousand impressions

This type of payment mode allows to bid for impressions, so they pay for the number of users viewing the mobile ad, and not for the clicks or conversions.

Not all advertisements are focused on getting immediate conversions or actions. A mobile ad may sometimes solely target brand awareness. These are the instances where CPM or cost per mile modes work best.

Mobile advertising companies factor their costs vary based on the industry, ad delivery channel, targeted location, size of user group being targeted, mobile device (operating system) and other factors.

Following are some of the crucial data points for mobile advertising costs:

  • 2017 global mobile advertising spend- 107$
  • 2017- Google generates 32% of total US mobile ad revenue
  • Average CPC for the year 2016- $0.27 (ranging between $ 0.03 in Bulgaria to $0.51 in Denmark)
  • Average iOs eCPM- $5
  • Average Android eCPM- $2
  • Average Banner ad format CPM- $1
  • Average Interstitial Ad format CPM -$3.5
  • Average Video Ad format CPM -$3
  • Average Native Ad format CPM- $10

(Source: https://www.buildinary.com/news/mobile-app-advertising-rates/ )

Examples of Companies with Successful Mobile Advertising Campaigns

According to IAB’S internet advertising revenue reports, mobile has grown to account for nearly two-thirds of digital ad revenue for the year 2018. Additionally, approximately 71% of the time spent online tends to be on a mobile device.

While the list of brands that have reaped the benefits of mobile advertising is endless, following are five top brands with highly successful mobile advertising campaigns:

  1. Samsung: Samsungs interactive ads which included a personalized real-time battery identification mobile ad unit, when they first introduced Galaxy S6 was a huge success. It allowed viewers to experience the product before they could decide to purchase it. An interstitial ad was also created to demonstrate the smartphone’s fast charging feature. Since users were actually looking for this feature, the targeted mobile advertisements along with the catchy CTA button that led the users to experience the product created a greate demo ad.
  1. Nissan: The video ad showcasing Nissan’s Rogue SUV was an instant hit. The ad featured a fight between the SUV and a gang of snowmen. Users could tap on their touchscreens to participate while learning about the features of the automobile.
  2. Snickers: Remember how you wanted to grab that chocolate bar every time you heard their audio ad that said: “you’re not YOU when you’re hungry”? Snickers targeted a group of users who were actually listening to a different music genre that was not their usual choice. Just as they were disinterestedly doing that, the audio ad was delivered to pinpointed users who were then taken to Snickers branded playlist called “The Hunger List”.
  1. Netflix: Yes, the world’s leading entertainment service provider created a realistic advertisement experience to capture the interest of the users. The ad used the fear experience that people had while watching their horror paranoia series called Black Mirror. User mobile screens changed to black which resembled a broken mirror. The ad grabbed immediate attention, to say the least!
  1. Pond’s: The super interactive mobile advertisement created by Pond’s managed to grab high user engagement time. What did they do? They targeted a specific group of customers who spent a large percentage of their time on mobile phones and cameras.

The ad created a personalized event where the front-facing cameras of their smartphones were used. As the user looked into their device, the camera tracked facial features and detected acne-prone areas of the skin. Bang! Their new Acne treatment product was a hit.

Final words: 

2020 is fast approaching.

You can no longer solely rely on the quality of your products to win over new customers. Customer experience is important too. With the growth of mobile advertising, business owners need to now focus on mobile customer experience. 

Mobile advertising is the future of the advertising industry. It is the quickest way to reach the Gen Z audience to sell your brand or product. With news of 5G being introduced to the markets soon, the internet speed will go zooming. Video ads, gamification and reality ads will get easier to deliver. 

Finally, Virtual Reality and Augmented Reality are expected to play a significant role in the world of mobile advertising. 

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