Tag: mobile ad revenue

Mobile marketing continues to be a struggle for Google

| July 23, 2014

The company’s quarterly results have revealed that it has yet to master this advertising channel.

Although Google has proudly held its position as central and key to online advertising as a whole, when it comes to mobile marketing, specifically, it is becoming increasingly clear that the search engine is having a hard time spanning the gap to the smaller screen.

Although consumers may be using their smartphones and tablets on an increasing basis, advertising to them is difficult.

Mobile marketing is not simply a matter of the same traditional digital advertising, only on a smaller screen. Formats that were used over desktops are providing an entirely different experience for smartphone and tablet users, and it’s not one that they like. The screen size restrictions and touch screens mean that old ads simply don’t carry over to the new devices. That said, Google has not yet been able to figure out exactly how to make its ad business shine as it has done for the desktop and laptop channel.

This has meant that Google is less capable of charging the same type of premiums for its mobile marketing ads.

mobile marketing - GoogleWhile this has been suspected for some time now, the recent release of the company’s earnings has only underscored the struggles that the company is facing as a result of this problem. The cost per click (the amount that an advertiser pays every time an ad is clicked) fell by 6 percent in the quarter that closed in June, when compared to the same quarter in 2013. This has been blamed on the increasing shift toward mobile advertising.

The decline in the ad prices was only the latest in an overall two year trend in that direction for Google. That said, further analysis was not made possible based on the released data as Google does not provide a breakdown of ad revenue based on desktop versus mobile channels.

Google is not alone in its struggle to break through the mobile marketing challenge and come out shining. Nearly all of the major players have found that the transition to multichannel marketing that will appeal to various forms of device user has involved quite the bumpy road and that the various gadgets and screen sizes are presenting far different requirements than had been initially expected.

Mobile marketing will overtake print newspaper ad revenue in 2014

| March 24, 2014

This prediction has been made specifically about the U.K. industry by eMarketer.

Newly released research from eMarketer has forecasted that mobile marketing ad spending will break the £2 billion mark this year, and will have reached £9 billion by 2017 across all digital media.

This will have the channel overtaking the revenue from newspaper ads for the first time, this year.

This will be a considerable increase in the total digital media advertising spending, which had reached £6.3 billion, last year (that is, a share of 44.3 percent of the market), to reach £7.1 billion, this year (which will mean a share of 47.5 percent of the market), according to the mobile marketing data released by eMarketer.

The figures estimate that mobile marketing will eat into newspaper advertising quite a bit.

The estimated figures from the firm suggested that national and regional newspaper advertising will drop from having been £2.2 billion last year (a share of 15.3 percent of the market), to £2.1 billion, this year (for a share of 13.8 percent of the market). This will represent that sharpest market share loss across all of the various categories of media between last year and this year.Mobile Marketing Will Take Over Print Newspaper

Newspapers will be taking a place behind mobile ad spending in the United Kingdom, for the first time, says eMarketer. The amount being spent for advertising to smartphone and tablet customers will rise from last year’s £1.9 billion to a much higher £2.3 billion, this year. It was also predicted that by 2017, the figure for newspaper ad spending in the U.K. will have dropped to only £1.9 billion (11.2 percent share of the market).

Equally, while mobile marketing takes off, television advertising is also expected to rise from £3.6 billion to £3.7 billion from 2013 and 2014, although its share of the market will slip just a little bit from last year’s 25.6 percent to 24.7 percent this year. eMarketer feels that when it comes to the amount of money being spent on digital channels will only continue its sharp increases from now through 2017. By that year, ad spending on digital will rise to £9 billion (a market share of 53.8 percent).