Five Top Trends of In-App Advertising

Today, modern consumers spend a large part of their time on some sort of digital device.  On average, people spend over three hours a day on mobile devices, and a large part of that time is spent using mobile applications, as opposed to browsing the web.  Because of this, advertisers are noticing the benefits they can reap by utilizing in-app advertising.  As people spend more and more time using their mobile applications, advertising within those apps is driving more and more traffic.  This traffic translates into a growing opportunity for businesses who are able to take advantage of it.  Because of the unique personalized experiences of applications, in-app ads are able to provide marketers with unprecedented amounts of data, helping those businesses reach their consumers in new and vital ways.

Here are five ways in-app advertising is becoming the new normal for advertising

1. Utilization of Cross-Device

As consumers are becoming more and more digital, they aren’t limiting their activity to just one device.  The average user today jumps between a smartphone, a tablet, and a desktop during the course of a normal day, not to mention other devices such as gaming platforms and other household devices.  Effective advertising works to deliver a seamless experience to the user, regardless of which device he’s on.  As the consumer jumps between platforms, new technologies are able to track a user’s progress so they can pick up where they left off.

All of this activity also leaves a trail of data, helping advertisers learn about each individual user in order to deliver the best, most effective advertising right inside of the app currently being used.  As technology improves over the next few years, this seamless experience is only going to improve, ensuring that in-app advertising can only get better and more effective.

2. An Increase in Video

Pop-up advertisements are continuously blocked or loathed.  Banner ads are simply ignored.  However, advertisements that use video as a medium can be interesting and engaging, and are quickly becoming a popular and widespread form of in-app advertising.  Video can include such forms as traditional commercials, interactive mini-games, or other formats that quickly catch the user’s attention and keep them engaged.

Besides being interesting and innovative, video ads also deliver a friendlier experience for the user, who doesn’t want to have his activity paused to deal with annoying pop-ups or banners. For these reasons, advertisers are starting to notice and pay more on mobile video advertising.

3. In-App Spending on the Rise

As stated earlier, most people spend the bulk of their mobile time within an app as compared to browsing the web.  As users become more comfortable shopping and spending online, it follows that they are also starting to spend more money within an app.  As retailers and businesses are creating apps to deliver a direct shopping experience to consumers, rather than having to rely on their shopping through the web, the direct line from consumer to business is strengthening.

Even when a user is not comfortable buying within the app, users are increasingly using direct apps to find out about products and services before making their purchase.  All in all, researching and spending through an application is rapidly increasing, and will soon be the normal mobile shopping experience

4. More and More Messenger Services

As social media usage is on the rise, an even higher increase in the use of social messaging services such as WhatsApp and WeChat has led to a completely new source of advertising.  These new social services are expected to top a billion users within the next couple of years.  In fact, some analysts predict that social messaging services will soon overshadow standard social media sites soon, and advertisers have taken notice.  Facebook is currently working on advertisements within its Facebook Messenger application, and Whatsapp is also working towards being ad-supported.

5. More Personalization Available

As more data is becoming available, advertisers are able to tailor their ads directly towards the individual consumers, allowing for a host of varying ad tactics.  By mining the available treasure trove of data, a business can send messages directly to an individual, with information specially suited for that individual’s wants and needs.

With all the options and data now available at an advertiser’s fingertips, the digital market is set for a revolution in advertising.  As mobile application use becomes even more dominant in the next few years, consumers have to be targeted in increasingly new and innovative ways.

With a seamless cross-device experience, users are now able to work within an app for extended periods of time, allowing businesses to gather a seemingly infinite amount of data that can be used to help deliver a personalized advertising experience, whether it be through interactive content, video, or some other means.  Regardless of how it happens, marketers need to be ready to change and adapt along with the new available technologies.

3 Reasons Why In-App Advertising Is Ideal

More and more marketing gurus turn to in-app advertising as a way to capture the attention of consumers. Instead of annoying banner ads running on websites, companies and consumers see discrete advertising within apps themselves.

In-app advertising is an ideal situation for companies that want to earn more loyal customers who return again and again. Here are three major reasons why.

Time Spent

Users spend more time in apps and mobile devices versus surfing the web. A 2016 report from venture capital firm KPCB states that smartphone users spend 89 percent of their time on media in mobile apps and just 11 percent searching the internet. These apps may include games, music players and video streaming, but the overall choice is clear. More and more people spend time on smartphones, and they spend most of their time in mobile apps.

Hundreds of millions of people worldwide use smartphones. Android leads the way, followed by iOS phones. With new releases of phones each year, the market for these devices isn’t going away any time soon. Facebook’s ad revenue due to in-app ads skyrocketed 41 percent in just 12 months. Clearly, the trends are moving towards mobile.

What does this mean for in-app ads? It means more of your advertising and marketing budget should go towards in-app advertising. Companies must go where the consumers are so they can give the people what they want. That means mobile apps, more mobile apps and mobile apps all of the time.

Better Click-Through Rates

In-app advertising has higher click-through rates as opposed to mobile web use. Apps on smartphones deliver twice as many click throughs as opposed to ads on mobile web at a rate of 0.58 percent to 0.23 percent, according to a study from Medialets. These numbers are still small, but if you send out an app to 1,000 people that means your mobile app advertisement reaches 58 people versus 23. Those 58 customers could provide a vital source of steady revenue you didn’t have before.

Click throughs happen when people tap on a piece of coding in an app or on the web. The advertisement then measures precisely how this person found the ad and where the person went after clicking through.

Your app can’t rely on shnazzy ads alone. The in-app ad has to come with relevant content that your customers want to see. Your app must engage with customers and keep their attention long enough for the ad to be effective. Once you have good content, then you decide where the ad goes within your app. Fortunately, an app provides a precise way to measure what your customer wants.

Precise Targeting

Mobile apps work by mining information from a user’s smartphone. Based on an app’s terms of service, coding can get user information, location information through GPS, web searches done on the smartphone and even the products someone looks for on the phone. Companies use this precise information to make offers, deals and promotions to customers and clients.

Similarly, in-app advertisements can display at various times in the app. They can also have various topics based on a person’s location and clicks on the phone. In-app ads are incorporated seamlessly and naturally, so they produce a better transition from the actual app and to the advertisement. When apps work in concert with their advertisements, companies marketing their wares through smartphones win. The trick is to have a wide-ranging marketing strategy that puts mobile first.

For example, a customer sees a billboard driving along a city street or sees a sign on a storefront. The physical ad intrigues the consumer, so he or she grabs a smartphone to start looking for more information. This is where omnichannel commerce and mobile advertising comes into play. Your mobile app, and any ads you place with them, mine for new customers across many channels. An in-app ad can supplement advertising you have elsewhere.

Once you grab someone’s attention, it’s time to retain customers with offers and ways to get them into the store. After someone buys an item, your app sends them another ad to retarget for another purchase sometime in the future.

Final Thoughts

In-app ads are great ways to reach thousands of customers, even if you’re a small, local business. You need every advantage possible, which is where the experts at Rain can help. We can create a great mobile experience for your company and your customers that makes an efficient use of your hard-earned dollars. Whether you own a restaurant, bookstore, resale shop or pet grooming service, we have app marketing for that. Contact us today and let us show you how to drive mobile traffic to your business.

Why You Should Invest in Mobile Search Engine Advertising

Every marketer wants to deliver the perfect message to the perfect customer at the perfect time. People are constantly on the go, and marketers want to reach people wherever they are, which is why mobile device ads are growing in popularity.

There are two major trends that drive this popularity:

  1. People rarely part with their cell phones. In fact, around 30% of people say their phone is the first and last thing they look at each day, and 37% say they check their device at least every 30 minutes. One third of all cell phone owners prefer to communicate via text message, and a whopping three-quarters of people say that they could not function without mobile technology.
  2. People are impatient and want data and information NOW! People no longer wait until they get back to their home or office to look something up. Instead, they use their mobile device to get the information on the spot.

It is now the norm for people to shop on their mobile devices, searching for products and services they need. Business owners today must have an online presence where you are targeting customers based not only on their preferences, but also on their demographics and geographic location.

Mobile devices account for more than half (53%) of paid-search clicks in the U.S., with nearly 2/3 originating from smartphones while the other 1/3 originate from tablets. Spending on mobile search ads in the U.S. alone has increased from $8.56 billion to $18.5 billion in less than 2 years (2014-2016), and is projected to soar to over $28 billion by 2019.

Pay-per-click (PPC) ads like text ads and mobile ads performed very well in 2015 for the majority of marketers; nearly 80% said their results were very good. Marketers are planning to increase spending on search engine ads from 15% to more than 30% in some cases, a true testament that it must work—and work well.

In an August 2015 survey of marketing professionals in the US, 90% said text ads were most important for them. They may not seem elaborate, but they rank consistently high among marketers’ spending allocations. Additionally, Google accounted for 95% of all paid search ad clicks in the U.S., and again the overwhelming majority of clicks originated from either a smartphone or a tablet.  Google’s mobile search ad revenue is projected to be $11.5 billion by the end of 2016, accounting for approximately 45% of its total ad revenue. That number is projected to increase to nearly $14 billion in 2017, and by then, over 50% of total ad revenue will be driven by mobile search ads.

As more consumers move to smartphones for convenience, the smartphone is a dream come true to advertisers and businesses. Cost-per-click is 24% lower on a smartphone than on a regular desktop, but it yields much better results, at 40% higher click-through-rate (CTR), the ratio of users who click on a link compared with the number of total users who view an advertisement.

When asked to consider all media ads—traditional as well as digital—72% of marketing executives ranked paid search as one of their two most effective methods. The execs said they could prove clear ROI from paid search, and that delivered clear revenue results.

Recent strides in location-based marketing like geo-location are very appealing to marketers because it works phenomenally well with mobile advertising. Basically, you can see where you customers are now and where they are going, so your ad tries to appeal to them on the way! This is why it is so important—no, crucial—for local businesses to go mobile. You simply must have a mobile presence.

Nearly four in 10 adults used their mobile devices in 2015 to find a local business or service, and they did so at least once a month. Mobile users are impressed when they find a local business with a website optimized for mobile devices, and like most of us, you will take the next step if you like what you see. More than six in 10 will contact a local business if they see it is optimized for mobile. Users want the usual–store details, address, directions, store hours, contact phone numbers, product lists and prices.

There is so much background data available now to marketers, such as location data, and insights to preferences and behaviors, and all of that data allows marketers to really target their audience to deliver fresh, intelligent, and insightful advertising. Judging from the incredible growth of this area, the future of mobile advertising will be a sight to see. By the end of 2016, 177.8 million mobile phone users will search using their devices—this is 55% of all U.S. consumers. Join the wave now and don’t get left behind!