Mobile Becomes the Major Player in Internet Advertising
By Jessica Herbine
You can tell a lot about consumer trends by the way in which businesses spend their marketing dollars trying to reach them. From campaigns that address hot button issues to adapting new technologies like the simple and clean QR code, advertisers leave a paper trail detailing consumers’ latest infatuations and progressing interests. If the Interactive Advertising Bureau (IAB)’s most recent half-year ad revue drew only one irrefutable conclusion, it is this: the public at large has gone full-out mobile.
While revenues for commonplace search advertising campaigns remained about the same as this time last year – with a nominal 4% increase – mobile revenues skyrocketed a whole 76%. With $2.7 billion raked in from mobile search, internet ad revenues reached a half-year high previously unseen by the IAB: a total of $23.1 billion in spending, up 15% from the half-year mark in 2013.
Senior Director of the Mobile Marketing Center at IAB, Joe Laszlo believes that the steady values attributed to search revenues are nothing at all to be concerned about. This trait, he says, is most likely due to the fact that SEO is a maturing industry, and marketers are finally becoming comfortable and more knowledgeable in their spending habits.
However, what goes up one year must eventually come down. The full report, which can be read here, shows that while directories and classifieds are not wholly obsolete, they have stagnated in a way that suggests we’ll likely see a decline in spending moving forward. Together they brought in $1.3 billion; and although that number is by no means laughable, Laszlo noted that those businesses who want to remain relevant will need to re-assess how their visitors find, sort and access content. That said, the study notes (and we tend to agree) that localized directories and niche categories will remain valuable as ever for those who choose to utilize them.
The report breaks down mobile revenues as $2.7 billion coming from mobile search, $2.5 billion from mobile display, and $103 million from other formats – banners, digital video, sponsorship and so forth. Another medium which earned plenty of revenue this period was social media, which received its own category for the first time this year and is responsible for 2.9 billion dollars in spending, up from $2.6 billion last year.
As mobile search is still a young tool in this generation’s arsenal of technology, it is important to remember that the lines between Google search ad buy for mobile and desktop are still blurred; especially with the rising popularity in responsive design. The keywords and long-tail phrases that bring value through traditional search will likely still serve marketers well in the mobile sector, but Trinity Insight recommends A/B testing various terms between the different channels for best results.