Consumers in the U.S. now spend a majority of their Internet time on mobile, and this rapid evolution in behaviour has advertisers scrambling to catch up.
Mobile presents a fractured ad ecosystem, and while ad spend growth is steep, there is plenty of uncertainty about how to best reach the mobile audience.
In a BI Intelligence report on the mobile advertising ecosystem, we explain the complexities, and examine the central and dynamic roles played by mobile ad networks, demand-side platforms, mobile ad exchanges, real-time bidding, agencies, brands, and new companies hoping to upend the traditional banner ad.
Here are the dynamics surrounding the mobile advertising ecosystem:
- Mobile advertising is still underperforming relative to the size of the mobile audience. Why? Mobile CPMs are low, and ads are oftentimes intrusive. Ad spending has therefore not caught up with time spent on mobile. These will remain significant challenges to mobile ads.
- Also, the mobile ad ecosystem is very complex: The mobile ad ecosystem is not as strictly delineated as the desktop ecosystem. In mobile advertising, the rules of the road change with different combinations of device, wireless operator, and operating system.
- And there are few shared protocols or standards: Mobile lacks the technical consensus that enables ad targeting, delivery, and measurement to work fairly seamlessly across the desktop world. As the mobile ad industry matures it will likely become more streamlined and simple, but for now there are innumerable actors interacting with one another and attempting to find a niche.
- The display ad category presents a dynamic and complicated future: Google has dominated the paid search category, but, mobile ad networks, demand side platforms, mobile ad exchanges are all part of a dynamic ecosystem that is constantly evolving and trying to grow non-search mobile related advertising. New companies are also testing out and finding some success with mobile native ad formats.
In full, the report:
- Explains the nuances of the fractured and complex mobile ad ecosystem
- Analyses how mobile ad networks play a central role that is coming under threat
- Examines how demand side platforms and mobile ad exchanges are streamlining the market
- Breaks down how real-time bidding will play a growing role
- Details how agencies are coming around to mobile and are trying to bring big brands along
- Explains how new companies are emerging with native ad formats that are hoping to upend the traditional banner ad