Programmatic advertising and mobile in-app marketing – a perfect symbiosis
If you are a media buyer, you should know – your audience is already here…
The time consumers spend with media is shifting more towards mobile phones. Until 2021 – eMarketer forecasts – users in China will spend more than 220 minutes per day on their mobile phones, compared to 141 minutes per day for various TV formats.
Mobile telephony will be the dominant channel through which viewers will watch consumer-videos – according to Cisco’s Visual Networking Index, 79% of global mobile traffic will be video by 2022.
Programmatic and mobile in-app advertising
a perfect symbiosis
The most revolutionary aspect of programmatic buying is that it allows advertisers to serve a specific ad to particular audiences in a certain context. Advertisers can precisely determine which audience gets to see which ad and when. It provides a huge advantage over the traditional segment-based buying, where advertisers can only offer one generic ad to a large and diverse segment of the audience. By reaching only the audience you are targeting, you avoid spending the advertising budget on the wrong group of audience.
Collect and analyze data more efficiently
In their report MMX Multi-Platform, Worldwide Rollup, published in June 2019, Comscore found that 75% of digital users consume all their social media, lifestyle, travel, news, and utility content through mobile apps.
Another major advantage of programmatic is that it uses automated technology, which improves the efficiency of the media-buying process of campaigns. This means you can gather and analyze data more efficiently in order to develop insights to optimize campaign performance.
Quality rises with popularity
As programmatic advertising becomes more and more popular, so does the quality of inventory offered by publishers. While there were certainly some initial hesitations from advertisers in adopting the programmatic approach, programmatic has made its mark in the market, with many publishers now utilizing it as a main source of media.
This has driven them to largely access mobile inventories via Private Market Place (PMP) deals – taking the white-listing approach. And while there are advantages to this approach, it does limit access to some inventory compared to open market buys, and potentially contributes to a longer media approval cycle.
Programmatic makes the work of media buyers easier
Device ID – Alternative to cookies
With Google’s Chrome announcement sounding the final death knell for third party cookies, the device ID is a game-changer for targeted media buying:
- Device ID has a longer lifespan (as long as that of the handset); hence the tracking and targeting of users is prolonged and could be more accurate with lots of data collected over time.
- Whilst not infallible device ID is generally unique to the owner of the device; so marketers can assume that they are likely to be targeting a unique individual.
- Cross-device tracking becomes more complete with device ID – allowing marketers to identify users on mobile and connect those same users with data from their desktops and connected TV devices.
- Location targeting becomes more far more effective and accurate.
The 5G era – a leap in performance is imminent
Mobile in-app advertising is on the verge of receiving a huge boost from the advances made with 5G.
Until 2023 there will be over 424 million 5G smartphone broadcasts worldwide (compared to 73 million this year). 5G phones are expected to bring a huge leap forward in the performance of the mobile user experience, especially with high-definition media and interactive technologies such as mobile gaming and mobile video streaming rooms.
These developments open up a range of new opportunities for advertisers, giving them more room for creativity and opening the door to delivering high-quality interactive advertising on mobile devices.
Performance is everything
When it comes to performance, methods that work for the desktop may not necessarily work for mobile devices. Incorrect use of targeting parameters on mobile phones can lead to a weakening of performance.
If an advertiser is trying to identify vehicle owners, on the web they would use browsing history such as automobile deals to identify whether someone was a potential vehicle owner. However, on mobile, app downloads such as real-time traffic apps offer a more robust way of identifying current vehicle owners. But if targeting parameters from the web were applied to mobile in-app – i.e. that a person needs to have browsed automobile deals, they would be missed as an opportunity.
Pay attention to compatibility
Lastly, creative incompatibility can be an issue for mobile in-app, meaning ads might not load despite a winning bid. The mobile environment makes it possible for advertisers to try out exciting new formats like MRAID (mobile rich-media ad interface definitions) but sometimes these creatives are not compatible with the impressions into which they’re served.
The problem is further compounded in certain markets across APAC by a preference for non-IAB standard ad-placements. For example in China, “splash” is a premium ad-placement. It is a full-screen ad placement that appears on the entire screen of the mobile device with a close button that appears five to five seconds after the app is launched. Although “splash” is a similar concept to an interstitial ad, it is not compliant with the standard IAB format. If an interstitial ad were to be served for this placement, it would likely fail to serve, or it would look distorted.
As the industry moves toward greater visibility, it is now time for media buyers to begin leveraging the information-based datapoints that mobile inventories can provide in terms of targeting, ROI, and better advertising experiences for consumers.
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