Profitable mobile advertising campaigns: fantasy or reality? (Part 1 of 2)
The title says it all. Profitable mobile advertising campaigns are not easy to find. It’s certainly due to a variety of factors. I consider this problem to be the biggest challenge in mobile advertising. Yet, if we drill into how the mobile market is evolving, it’s an achievable goal. Apple is helping to drive profitable mobile ad campaigns with its forward thinking improvements around tracking user activity for purposes of advertising.
In-app traffic, however, lacks fundamental tracking technology (i.e. cookies). Can mobile advertising ever bridge the effectiveness gap? The answer is an emphatic “yes!”. I believe we’re at an inflection point in mobile where the leading ad tech companies will allow for the same type of ROI-based and/or action-based goals as we see today on the web. With Apple making the big move towards IDFA now (its universal identifier for advertising), it has actually opened the horizon for proper attribution. Prior to this move, there were privacy concerns with identifiers like UDID, and no single standard. Publishers passed certain information, advertisers tracked against other items, and attribution was highly complex. With the single standardization, the future prospects of mobile advertising are considerably brighter.
Now, advertisers have a single measurement tool that can be neatly attributed across all in-app mobile ad inventory. Data companies will grow to aggregate demographic and user purchase behavior tied to the single IDFA. Eventually, retargeting will be possible and prevalent. As consumer consumption quickly shifts from traditional web to mobile (and specifically in-app traffic), advertising capabilities will bridge the ROI gap, consumers will start to see more relevant mobile advertising, and everyone will benefit from the virtuous cycle.
A relevant future indeed!