Of all the industries reinvented when the Internet gained popularity, mobile advertising was one of the most shocking. Google, and later Facebook, gained dominance by providing the ability to segment out audiences into small groups and effectively target them. When rapid innovation brought us the cell phone, and eventually the smartphone, mobile advertising became the best way to target audiences everywhere. One of the most important factors is the capability to measure and manage who is seeing the ads, as this precision adds value for advertisers everywhere.
- Mobile advertising has now reached a point where it forms the majority of advertising. With companies digital spend being composed of 51% mobile advertising, it has finally hit a point of the majority, and this trend shows no sign of slowing down. Additionally, in 2016 Google received 59.5% of their global net revenue from mobile advertising.
- Facebook has seen the same trend as Google, and now has 79% of its business coming from mobile ads. In this way, it is very clear where the future of mobile advertising is. With Google and Facebook taking a dominant share in the space it is unlikely that any new platforms will emerge, so it is essential to learn the ins-and-outs of operating through these marketplaces. For advertisers, this is both a good and a bad thing. It’s good because there are two clear platforms to go through that will give most of the returns on mobile advertising. It’s bad because those two platforms have so much power that all advertisers are beholden to them in a way. Monopoly power is a worry for a reason – it creates companies with too much power in the marketplace.
- A further problem for mobile advertising is the issue with attribution transparency. There is a trust concern in the industry over how simple it is to verify what target group and how many of them are actually seeing the ads posted. Studies have shown 41% of marketers believe attribution transparency is the biggest challenge to overcome in the mobile advertising industry. For any progress to be made on this problem, it will require big platforms and advertisers to work together on solutions both parties can depend upon. One solution which has emerged in the past few years is the concept of using blockchain to verify ads.
- The blockchain is the technology behind Bitcoin, and it works to decentralize transaction records so that they become effectively tamper-proof. Although the records are mostly used for financial transactions now, they are able to keep track of virtually any economic transaction one could conceive of. So by integrating advertising with blockchain, it would be possible to have a third-party – the blockchain technology – verify whether an ad had been seen and who by. These innovations aren’t expected for a few years, but when they do it will solve one of mobile advertising’s biggest problems.
- The future of mobile advertising is bright, and companies like Websitebuilder is working hard to help companies take advantage of that. It is thought that even with desktop advertising growing to $91.5 billion in 2018, that will still leave space for mobile advertising to dominate 58% of the total spend in the industry.