The Interactive Advertising Bureau (IAB) has a new Internet Advertising Revenue Report (pdf) conducted by PricewaterhouseCoopers.
The key headlines are that advertising revenues increased 19% and social advertising increased 51% in 2015 half year. But what about the mobile part? The chart below shows that mobile is taking over a larger share…
The chart below is more striking in that it shows the change in advertising format share over time. Only digital video and mobile are increasing. Mobile looks exponential.
What does this mean for developers? I suppose it depends if you are publishing ads, creating them or somewhere inbetween enabling the ad ecosystem. If you are in-app, ad funded then you can probably rely on an increasing stream of ad inventory. If you are relying on mobile ads to promote your app, product or service you can probably expect more competition for ad placement and increased user acquisition costs. If you are in the middle ground, enabling the ad ecosystem, there are bound to new opportunities.
One such opportunity is advertising analytics that will need to mature to the level achieved by more conventional ad formats. See MobyAffiliates for more insight into this area and a great roundup of the current top mobile advertising analytics and tracking tools.
FirstPartner has a new free (registration required) Mobile Marketing Market Map that clarifies the mobile advertising ecosystem. It covers areas such as audience, contextual data, cross-screen targeting, analytics, attribution, acquisition, monetisation, proximity marketing, permission based messaging, loyalty and couponing.
If you are considering or using an ad-funded model, you might like to take a look at mAdserve the new open source Ad Server for publishers. The iOS and Android SDK together with open source php server code allows you to host your own ad server connecting to over 31 global and local ad networks.
Hosting your own service means you aren’t paying a middleman for aggregation and won’t be beholden to changes in terms of service. The only concern I have is scalability. However, mAdserve claim you can achieve 100 Million monthly ad-requests on a low-end machine which is adequate for the long tail of apps.
Advertising Age has a thought provoking article on how Retailers Worldwide Struggle to Keep Up With M-Commerce Demands.
I think the real problem is that it’s not that easy to take your existing web-based store and create a mobile version. As the article says, the UK’s large retailer such as Marks & Spencer and John Lewis are creating mobile versions. However, they have large budgets. What about the large number of smaller retailers?
Up until now, most things sold via mobile are other things consumed on the mobile… games, applications, new levels etc. I see there’s a large opportunity to create a white label web-based mobile shopping store and maybe even multi-platform white label shopping store apps that sell real items and could be licensed to many smaller companies.
This opportunity is open to the giants (Apple, Google, Microsoft), existing web-based store vendors, payment providers, network operators or maybe even a new 3rd party developer. There are lots of issues not least interfacing with existing systems and payment but the first to crack these should have a very interesting and lucrative business.
Forbes Insights has a great new free report ‘Retail’s Mobility Imperative’, sponsored by Research In Motion, on retailers’ mobile strategies. The report is based on an ‘an exclusive survey of more than 300 executives at top U.S. retailers (multi-location chains with annual revenues of $100 million-plus).’
Robin Jewsbury has an useful post on mobile advertising on the Forum Nokia Blog. He describes his experiences of using mobile advertising and why he uses more than one advert provider to improve income.
Robin mentions the main problem with mobile advertising – scaling. Whether you are using adverts, providing them or in some mobile operations, trying to balance adverts and advertisers, maintaining ad inventory can be tricky. I have worked with some ad-based companies that have struggled to maintain this balance.
While I know some ad networks deal in adverts from other networks, many people are taking the do-it-yourself approach to try to get the best of balancing advertising supply, demand and income. I think there could be opportunities in this area for consolidation in libraries, APIs or new services.