The notion of advertising all but propping up the digital publishing industry is an uncomfortable but unavoidable facet of modern content. When value is measured in clicks, clickthroughs and conversions, publishers with few other streams of revenue turn to the sensational and the misleading to garner traffic as print revenue disappears. The explosion in mobile internet usage has threatened these techniques, though, and as the gulf between time spent on mobile devices and ad spend is bridged, marketers will need to rethink their strategies.
In short, the medium of mobile internet and apps presents some major problems for advertisers, problems that threaten the revenue stream itself, in turn adding further insecurity to an already floundering publishing industry. Of all domestic news revenue in the US, 69% comes directly from advertising - if this ad spend becomes ineffective it’s not just marketing that will suffer. According to Business Insider UK, mobile is still set to be the ‘fastest-growing advertising channel’ for the foreseeable future, but brands and tech companies alike need to ensure they’re doing it right.
Currently, perhaps the biggest issues when putting together a mobile ad campaign are the format itself and the loading times that come with it. Pop-ups are too intrusive on a mobile device because of the smaller screen and the still imperfect mobile browsers, and video still loads less quickly when using data than it does on wifi - essentially, mobile advertising is too slow.
Find out more about advertising on the small screen at the Mobile Innovation Summit this December 6 - 7 in San Francisco.
Google has been taking measures to remedy the speed issue, though - understandable given their huge stake in digital advertising. At the recent DoubleClick Leadership Summit, the tech giant announced its plans for AMP (Accelerated Mobile Pages) for Ads, an open-source project designed to encourage advertisers to put together ads that don’t affect loading times so dramatically. Google found that when publishers can load ads in under five seconds, advertising revenue can double compared to the 19-second average range.
Google’s AMP initiative is focused on speeding up the loading of content on mobile devices more generally, and Google claims AMP pages load four times faster and use 10 times less data than other pages. AMP for Ads is, according to the Wall Street Journal, simply a ‘set of guidelines and code that ad agencies and brands can employ to build faster ads.’ If Facebook’s commitment to Instant Articles is considered alongside AMP, it’s clear tech companies are committed to streamlining the mobile browsing experience - it benefits tech companies and publishers alike.
Advertisers haven’t yet hit the same realization. Mobile ads are all too often stacked with multiple tracking mechanisms or unnecessary visuals that grind page loading to a near halt. The second major issue faced by digital advertisers is, then, a direct product of the first - the fact that ad blocking software has made its way onto mobile and has been accepted by the likes of iOS. The entire system of downloading apps makes mobile a very receptive medium for ad blockers, despite the fact only 22% of the world’s smartphone users currently use them.
Ad blockers on mobile face the difficulty of being unable to affect others apps, and sandboxing should prevent them from doing so. Given that around 90% of mobile internet time is spent in-app, and digital publishers will often have their own apps with their own advertising, revenue shouldn’t be affected too drastically. Also, according to research from AdRoll, Apple’s acceptance of ad blockers has actually had very little effect on mobile ad spend - an initial drop-off occurred when the news broke, but among the regular peaks and troughs the dip doesn’t seem out of place. Even so, usage is on the rise, and as apps strip back traditional advertising in favor of loading speed and native content marketing, mobile advertising will need to adapt to stay alive.