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All You Need to Know About Mobile Ad and How It Works!

- Mobile App Development
All You Need to Know About Mobile Ad and How It Works!

In the beginning, when advertisers experimented text message – A lot of people were concerned that their mobile phones would soon be attacked by spam similar to their email account. With so many Americans worried about the threat of identity theft, mobile phone suppliers thus decided to introduce their own network, considering guidelines and best practices for mobile advertising. The choice has not only proved beneficial for customers, but for marketers as well, since the value of the advertising increases. The variety of ads that reach customers on mobile phones are actually more engaging, readable or at least acknowledged but not just virtually “thrown away.”

Mobile Ads

Investopedia elaborated this as “mobile advertising is a technique of advertising on mobile devices such as smartphones, tablets or PDAs that have wireless connections”. I find this one simplest and most comprehensive description. I am sure it leaves no question unanswered.

Mobile Ads Formats and Types:

There are numerous types of advertising banners and ads for mobile, you can’t rely on single mobile ads design all the time. It depends on the type of strategy you have and how you want to implement. We are breaking them down into simple categories, the complete picture thus look similar to the following subchapter:

Digital Graphic Banner

Banners are the most widespread advertising instruments when it comes to mobile device marketing/advertising. Banners are placed very strategically in areas that will avoid hindrance to the content of the webpage. Often displayed at the top or bottom of the webpage or an app, these banners graphically display relevant information. Since these apps and websites don’t provide an abundance of space to elaborate details, banners, quintessentially need to focus on brand awareness and brand recognition. End of the day, the sole motive of these banners remain to be, maximum target audience penetration and customer conversion (or at the very least leads.)

Native or Integrated Mobile Ad

As compared to other varieties, these particular type of mobile ads, with their thorough integration into the publisher’s app/website, appear a lot less invasive. The native mobile ads allow the website/app to deliver a higher rate of UX, in spite of having a similar tone and appearance to other pages of the same source.

Video Advertising

Out of all the visual media of advertising, the most effective one is – video. Video advertising falls mostly under the category of native advertising as it requires the user to interact with a specific media on the concerned application. In spite of following an ideally simpler approach, the creation of these ads is a bit complicated. Professional video editors, layout designers, coders and extensive budget and time are few concerns that generally comes along with a mobile video ad. However, if executed successfully, they can fetch a five times greater engagement rate as compared to regular banners.

Mobile Marketing

Although the above mentioned mobile ad types are decently effective on their own, yet, for a better success rate, your advertisement planning must strive to include all three varieties of mobile ads. Finally remember to imbibe your social media presence, influencer marketing strategies and native apps, that will help you boost your profit, brand image and product reputation.

What Kind of Customers You Can Target with Mobile Ads?

Up to April of 2012, the total number of American mobile device users was 234 million (with the total population being 312+ million.) Out of the total number of mobile device users, 122 million were smartphone users. By 2018, the number of smartphone users has climbed to 237+ million and is expected to hit 270+ million b 2020. Hence, we can see that when it comes to mobile ads, the target audience is less defined by age, race and class, and, more by shared behaviour. Now, media “snacking” is found to be the most common among all shared behaviours. In this scenario, users tap infrequently but only for a short duration (when waiting in a queue for instance,) and then promptly changes the application the moment it heads for a monotonous turn. This need for instant fulfilment (both in terms of entertainment and practical chores,) leads to an augmented demand for content– consequently, greater conversion hooking points for marketers.

  • 74.1% use text messaging
  • 50.2% download apps
  • 36% access social networking
  • 33.1% play games
  • 25.8% listen to music on a phone

Source: comScore, Inc. IPad users, however, tell a very different story. Falling between the age group of 25-44, iPad user’s count up to a total of 50 million. IPad users are generally, considered to be higher earners as compared to the average population, who are also frequent travellers, using their device on airlines, trains and buses. Smartphone users, in general, are more hooked by advertisements with informative and relevant content. On the other hand, iPad users are found more interested in interactive ads featuring vibrant colour schemes.

Why Mobile Advertising Really Works?

Mobile advertising essentially incorporates multiple creative media that are specifically engineered to perform optimally on mobile devices, including smartphones, tablets and e-readers. Mobile advertisements formats may vary, because every website, social media platforms, and applications have their unique advantage for businesses. To keep business up with the fast-paced lives of the people, you probably need to engage customers towards your brand, product, or service and mobile advertisement ensure your success. We have listed out top three reasons – why mobile advertising work?

Adding Relevance Value With Personalized Ads

Mobile advertising can render a far greater effect than simply reaching out to a mass of target audience over the internet. Certain individuals are more susceptible to certain ads, during certain periods of time. If noted carefully, there is a pattern and cause behind this susceptibility timing. Using the right sets of cookies and targeted data, to monitor and record the activity pattern of your audience, you will be able to customize your ad with respect to a specific group of individuals. For, e.g. track the geographical location of your viewers and present them with deals and offers relevant to their location. Adding extra relevance value to the ad campaigns, such mobile marketing tools and behavioural targeting are major reasons behind the success of small businesses and start-ups. Utilize the personalization of mobile advertising to channel a higher quality and volume of engagement rate.

Endless Format to Choose Form

The maximum time spent on smartphones by the users is on various applications. Mobile advertising tools sit well with a variety of media platforms, including, apps, mobile responsive websites and social media sites. Hence, once you decide on your campaign figure out the media most optimum for your target audience, and then, choose an advertising format accordingly. Your advertising strategies, within a particular format, can be made further interactive if you wish it to be. For instance, if your advertising is to reach the device of someone who is currently playing a game, it could very well link up with the game itself, in fact, your advertising could get even more interactive by adding a game-like interface to itself. On the other hand, if the occasion seems to be something more serious and formal, then techniques like, pay per call mobile marketing, banner ads, MMS or Bluetooth proximity marketing will prove to be genuinely worthy.

Evaluation of Technique and Making Necessary Adjustments

The behavioural pattern of users is what creates a base of every mobile marketing strategy. However, this behaviour is dynamic and ever-changing. Which further draws the need for media analysis tools. Exploring different ways of metrics measurement and analysing data from mobile browsers, the media analysis tools help the marketers stay posted on the dynamic behavioural pattern of the users. Keeping track of demographics, page clicks, likes, shares, time of engagement and such are certain parameters that will help you customize your mobile advertisement and generate a higher conversion rate. You can also compare different formats of your advertisement campaign, such as, social media marketing ads, banners ads, native ads, and more, and then finally, compare the engagement rates and conversion rates from each format to determine which sits better with your business process. Each of these strategies includes several subtle marketing essentials that are elaborately explained in various tutorial books, advice columns and videos. Carefully learning these strategies you will be able to build a successful strategy from scratch. By 2019, it is expected that 72% of digital marketing ads will account for mobile advertisements. Meaning, for your future ad campaigns, sorting out your mobile ad techniques and priorities will play a critical role in your business’s success.

How Do Mobile Ads Work?

Mobile ads that are typically being placed on mobile devices vary widely, both in their visual appearance and format. Further, expands this diversity, is the wide number of channels (like apps and social media platforms) through which the advertisements can be published. Mobile advertising is a two-way street.  It is improper to think that mobile ads are only for the benefit of the advertiser. In reality, it fetches a considerable portion of profit for the publisher as well. Advertisers benefit from the leads generated and engagement and conversion rates, whereas from these ads publishers are able to finance their websites and apps.     Generally, the content is delivered to mobile devices via phone calls, SMS, or data services. SMS, for a very long period of time, has been the common medium of carrying the advertisements. But currently, with an improved internet infrastructure, higher bandwidth, enhanced and elaborate mobile screen display capacity and ad-friendly carrier policies, mobile advertising has started to explore new dimensions in digital marketing. Mobile phones of today are almost desktop computers in your fist. Few Important Aspects of Mobile Advertising:

  • The mobile ad is never originated by the publisher but by the advertiser, which is then delivered to the consumer through the publisher.
  • The content creating agency, after generating the ad content, purchases the media channel with the publisher to promote the ad
  • The sole owner of the advertisement will always remain to be the content producer.
  • The advertising networks or publishers (monetizing on the advertisements) are responsible for ensuring that the mobile ads are placed in their portals in a fashion intended by the content producers.

Many advertisers today can be found who simply mimic their traditional counterparts of advertising. Although, considering the integral differences of apps, websites and social media platforms (in comparison to traditional advertising media,) it is advisable to formulate strategies that are more relevant with the architecture of digital media. Additionally, in mobile advertising, publisher reliance on finding a selling space is far greater, which makes the revenue sharing model between the entities, very dynamic. On the plus side, this ever-evolving revenue sharing model also creates new service opportunities continuously.

How Mobile Ads Are Served Best?

Mutual benefits for publishers and advertisers may be generated through the following types of ads and ad channels:

Mobile Apps Ads – Better Engagement And Conversion

A research by Emarketer shows that mobile app usage holds the maximum share in the total amount of time spends by an average user on digital media. A daily 25 minutes of mobile app usage by an average individual is yet another fact found in the same research. These facts comfortably suffice to conclude that mobile app ads are the centre point of any mobile marketing strategy.


Banners which are considered more obtrusive, make way for native advertising when it comes o mobile ads. Integrating static or video ads into the application are far less intrusive through naive advertising. While the opening of an application, in between and while closing, are certain openings to integrate the advertising. Using services like AdMob by Google to create and deliver ads to third-party apps and integrating your ad into Facebook’s mobile app via their dedicated advertising channels, are two very solid tools of native advertising.

In-Game Mobile Ads – For Gamers And Interactive Audiences

In-Game Mobile Ads is another very effective techniques, especially for interaction-friendly audiences. Choosing from full-screen video ads to mobile banners, you can push your advertising on reaching specific loading screens within mobile games.

Location-Based Mobile Ads – For Local Customers

These ads capitalize the most on opportunities related to the user’s geographical location. With the help of analyzing tools, the ad strategy is structured such, that the ads that appear on the users’ mobile device are always in context to their region and location. At times even in context with the specific area of business. For instance, targeting someone who enters the region where the business is located, or target individuals entering a particular shop or locality.

Mobile Search Ads– For Lead Generation

Much alike desktop google ads but only incompatibility with a mobile interface.

Costing of Mobile Ads

Approaching the payment process of your mobile ad campaigns can be done from various angles, but, the three most widespread means in the market are, CPC, CPA and CPM.

CPC (Cost per click):

Paying per click is a payment method provided to advertisers by almost every publisher. The cost, in this case, is inversely proportionate to the niche you select. Smaller your niche, higher the price you pay per click. As per Wordstream, $2.32 and $1.72 are average CPC across all industries for Google’s Adwords and Facebook respectively.

CPA (Cost per action):

While Cost per Click focuses on lead generation, Cost per action focuses on conversion. Sometimes considering the money and time spent behind extensive ad campaigns, lead generation doesn’t seem to suffice. It is the action that the advertisers are looking for. Hence, for such scenarios, paying per action will prove more beneficial. An ad campaign that focuses on the number of downloads, installs, signups and registrations, will benefit majorly from the CPA method. Here again, your cost will depend on your niche but will also be influenced by the quality of your banner and video ads.

CPM (Cost per mille – cost per thousand impressions):

This payment method is for when you have an ad campaign focused on total view. For such ad campaigns, branding is more of a focus, over lead generation and conversion. Choosing the CPM, you pay for the number of people viewing your ad and not the clicks and conversions. A mobile marketing based advertising company Mobyaffiliates, states that the average CPM for ads in mobile apps is $4, with $3 being for video ad and $1 being for banner ads. CPM (Cost per mille – cost per thousand impressions)

Our Core Message to Readers! Mobile ads not only benefit advertisers, simultaneously it fetches a considerable portion of profit for the publisher as well. Now, you have find where you stand, and how you can place yourself in this ecosystem.
Just leave us some comments below to know the best mobile ad campaign strategy that can get customers in your door.

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