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:
- 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.
- 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!