Tuesday, 25 February 2014

Mobile World Congress 2014 - Advertisers Shift Ad Spend to Performance-Based & Native Mobile Advertising

MassiveImpact Ltd the world’s leading provider of performance mobile advertising announces a 40% annual net income growth in 2013, driven by global trends shifting Internet usage from desktop to mobile, with growing demand for the company’s performance model.

Morgan Stanley predicted that 2014 would be the year that mobile Internet usage will surpass desktop Internet usage. The forecast is based on global mobile penetration now reaching 95%, and worldwide mobile subscriptions of 6.8 billion, or 4.2 billion factoring in that many people have multiple devices. This trend toward mobile Internet is directly reflected in increasing mobile advertising spend. Brands are leveraging better targeting practices with native advertising embedded into mobile content and user experience, new rich media and other innovative advertising formats to compel customers to take action directly from their phone.

“Rich media ads are having an enormous impact in the APAC region with an intelligent combination of interactivity and accurate user targeting,” says Sephi Shapira, CEO of MassiveImpact. “Mobile ads are able to touch a potential consumer on an emotional and more personalized level, driving a more proactive approach and ultimately increasing advertisers’ bottom line.”

Rich media ads have been popular across Asia, leveraging its faster wireless infrastructure. Short video ads of five to ten secondsoutperform text-based ads and typically achieve a higher click-through-rate (CTR) of 1.53% when displayed in an app and 1.12% on the mobile web. Banner or text-based ads have a CTR of 0.39% in an app and 0.32% on the mobile web.

Premium publishers, such as Facebook, are catering to the great demand for mobile rich media targeted campaigns and are experimenting with new standards and media types to gain the attention of major brands. In September 2013, Facebook tested video ads with Subway and other advertisers. As a result, Subway's ad reached an estimated 88 million people with "millions" of clicks on its ads, reported Tony Pace, CMO of Subway, to the The Wall Street Journal.

“There’s no doubt that video ads are going to be a big contributor to Facebook’s future monetization success,” say Gil Regev, Vice President of Marketing at MassiveImpact. “While the mobile industry is constantly improving mobile’s distinctive capabilities to increase engagement with personalized advertising, there are still many technical challenges ahead to provide efficient solutions across multiple standards and development platforms, each with its own unique requirements and channels. Publishing giants like Facebook, and Twitter provide an efficient solution for small vendors to reach their customers on mobile through few channels.”

As users transfer their Internet experience from desktop to mobile, the migration to mobile promotional activity has followed as well with brands allocating funds to target users on their mobile devices. Performance-driven models are particularly popular, directly linking ROI to every conversion and achieving higher impact while utilizing rich media and native advertising to personally cater to every user’s history and interests.