In order for advertisers to communicate and effectively reach their targeted audience, multiple channels are now essential to any ad campaign. With the proliferation of smart-phones and tablets only expected to grow, the mobile advertising channel will increasingly expand. Nonetheless, as seen with Facebook's inability to quickly monetize its user base via the mobile channel, mobile advertising is different kind of beast.
While mobile ads are generating click-through rates well above those seen on PCs, because they are completely new, the jury is still out in regards to their overall effectiveness. Advertisers fear users may eventually learn to avoid new ads. After all, banner ads had click-through rates above 5% when they began in the 1990s. Now they languish around 0.2-0.3%. This leads us to some important questions: What will ultimately become the best way for advertisers to reach consumers on the mobile channel and how can investors play this expected trend? Let's examine what our research has revealed.
At present, Google Inc. (GOOG) is the crowned King of Mobile by both advertisers and the stock market alike. Google's 2009 acquisition of AdMob now seems to have been quite prescient. With nearly 25% of Google's U.S. search ad dollars to be spent on mobile by the end of this year, it is clear the company's viability and future success lies with mobile. With the ever increasing popularity of its Android platform, its attractiveness to advertisers has grown considerably. Ads are now arriving on your Android phone, slyly sneaking into both games and apps, and also into your mobile browser. No matter what you think of these tactics, the market has recently voiced its opinion: no longer a runner-up to Facebook, Google should now be viewed as the leading player in mobile advertising. They will be hard to catch.
No comments:
Post a Comment