Mobile ad campaigns hit the target

BI Intelligence

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Mobile advertising is becoming significantly more effective at reaching the right consumers, according to Nielsen research.

In some areas, targeting effectiveness on mobile campaigns has caught up to – and even surpassed – desktop advertising. With this, we can expect advertising dollars to continue to flow into mobile formats, perhaps at the expense of desktop.

Nielsen’s research analyzed 40,000 US mobile campaigns between April and June 2016.Mobile campaigns across a range of websites, apps and digital services reached 60% of their intended audiences, up from 49% in the same period of 2015.

The research found that mobile campaigns are more effective for reaching:

• Narrower audiences. Campaigns targeting people between 18 to 34 had a 63% on-target percentage on mobile, compared to 53% on desktop. Nielsen posits that this is because mobile devices tend to be more personal, and less likely to be used by a shared audience compared to desktop.
• Female audiences. Among those aged 18-49, mobile campaigns reached 53% of women in the intended audience, whereas similar desktop campaigns reached just 45% of women.

However, desktop retains a slight advantage over mobile for reaching:

• Broader audiences. In campaigns targeting 18-49 year olds, desktop had a 70% on-target percentage compared to mobile at 64%.
• Male audiences. Among people aged 18-49, desktop campaigns reached 57% of men in the intended audience, compared to just 50% for similar mobile campaigns.

Overall, the rate of successfully targeted ads on mobile and desktop ads is now equal. Until recently, there was a considerable gap between the how long consumers spent on mobile devices versus how much advertisers were investing into mobile inventory. The so-called mobile opportunity gap – popularized by venture capitalist Mary Meeker’s “Internet Trends” slide deck – partly driven by limitations around targeting, tracking, and user analytics on mobile.

But mobile campaigns are becoming more sophisticated, and ad spend is following suit. In 2015, mobile occupied 25% of people's time consuming media, and 12% marketer's advertising budgets. This is up from 20% of people's time and only 4% of ad spend in 2013, according to Meeker. Similarly, mobile accounted for 47% of total ad revenue in the first half of 2016, up from 30% in the same period of 2015, according to the IAB/PwC Internet Ad Revenue Report.

Jessica Smith, research analyst at BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile marketing that takes a close look at the different tactics being used today, spanning legacy mobile technologies like SMS to emerging capabilities like beacon-aided location-based marketing. The report also identifies some of the most useful mobile marketing technologies that mobile marketers are putting to good use as parts of larger strategies.

Here are some key takeaways from the report:

• As consumers spend more time on their mobile devices, marketing campaigns are following suit. Mobile ad spend continues to lag mobile time spent, providing an opportunity for creative marketers.
• Marketers should leverage different mobile tactics depending on the size and demographics of the audience they want to reach and the type of message they want to send. With all tactics, marketers need to respect the personal nature of the mobile device and pay attention to the potential for communication overload.
• Mobile messaging — particularly SMS and email — has the broadest reach and highest adoption among mobile users. Messaging apps, relative newcomers but gaining fast in popularity, offer more innovative and engaging outreach options.
• Emerging technology, such as dynamic creative optimization, is breathing new life into mobile browser-based ad campaigns, but marketers should keep an eye on consumer adoption of mobile ad blockers.
• In-app advertising can generate high engagement rates, especially with video. Location-based apps and beacons offer additional data that can enhance targeting capabilities.

In full, the report:

• Identifies the major mobile technologies being used to reach consumers.
• Sizes up the potential reach and potential of each of these mobile technologies.
• Presents an example of a company or brand that has successfully leveraged that mobile technology to reach consumers.
• Assesses the efficacy of each approach.
• Examines the potential pitfalls and other shortcomings of each mobile technology.

To get your copy of this invaluable guide to the world of mobile marketing, choose one of these options:

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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of how mobile marketing is rapidly evolving.