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Aug
23
2011
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Behavior Targeted Advertising is About to Blow UpAmazon announced in late June 2011 that they will be jumping into the advertising industry, and you can be sure that other online retailers will follow. Amazon will expand from just selling targeted ads on their site to selling targeted ads on other websites too. This is how the process works: Amazon mines through their data and creates buckets of potential marketing targets. With the help of the ad tech start up, Triggit, and the use of cookies, they then track where visitors to their site go after they leave. Amazon then purchases ad space those visitors are looking at, delivers a relevant ad, and then charges the advertiser for the impression. So who wins in this system? It is actually a win for everyone because the consumer sees ads for products they want to buy, Amazon (or any other online retailer) makes money off of its own data, and the advertisers see their ad dollars become more effective. The numbers show that behaviorally targeted ads dramatically outperformed the entire display ad category in 2008 and 2009. These numbers attest to the opportunity this win-win-win scenario has for Amazon and anyone who follows them. |
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Apr
12
2011
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Mobile Advertising Part 2: Mobile WebsitesWelcome to the second half of our mobile advertising blog series! In part 1, we discussed how in-app ads are the future of mobile advertising and now, we’re shifting our focus to mobile sites and the important role they can play in advertising strategies. Currently, there are more than 72 million mobile web users and 69 million mobile app users, and both numbers are estimated to reach over 100 million by 2013. We’ve heard the debates regarding which is better (we’ve even had the debate a few times ourselves) and have concluded that both mobile app advertising and mobile web advertising are significant in today’s advertising efforts. Apps (good ones) generally have easier navigation and interaction, use rich-media and phone functions (i.e. camera and GPS), and don’t necessarily need an internet connection. The rise of “bigger screen” tablets not only call for better apps, but also more mobile web browsing. An Adobe survey stated that 66% of mobile users prefer to retrieve information through mobile browsing instead of mobile apps. Even though apps can serve many purposes and have the advantage of being downloaded onto the desktop to develop long-term relationships, it can be tedious and overcrowding to download and install an app for every little thing you want to do – sometimes a simple mobile search will suffice. Furthermore, multiple versions of apps need to be developed for each smartphone platform and only 38% of the US own an app-compatible smartphone, as opposed to the universal mobile site. On top of that, app developers need to share revenue and get approval from the app store in order to be published or make any changes. |
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Mar
8
2011
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Mobile Advertising Part 1: In-App AdvertisingMobile advertising is becoming an integral part of advertising strategies due to the fact that it can conveniently reach consumers right in the palm of their hands. This year, it seems the best way to reach users are through apps as they are being downloaded everyday for almost any occasion, opening the door to integrate mobile advertising more fluidly in a campaign while search, shop and share tools, such as QR codes, continue to play a major role. With 95% of mobile users downloading and using free apps, worldwide mobile app revenue will triple to $15.1 billion and downloads will more than double to 17.7 billion this year alone. While it is estimated that 51% of the US will have smart phones by the end of 2011, the popularity of tablets are growing as well with speculation that 50 million Americans will own a tablet computer in the next year. To keep the increasing number of tablet and smart phone users engaged through apps, iAds – a new form of mobile advertising that explores the capabilities of smart phones and tablets through rich media – is needed. Even more so when considering that mobile app revenue, especially for free apps, is made by cost-per-click mobile ads. While CPC mobile ads are a great way to advertise, CPC ad dollars are often wasted because users frequently click or tap the ads by mistake. In fact, a survey conducted by Pontiflex and Harris Interactive found that 47% of mobile app users click ads unintentionally with 61% being 18-34 year olds – the most active group of mobile users. However, the survey also found the solution that 71% of app users prefer in-app ads that don’t take them out of the app. |
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Dec
21
2010
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Forecasting 2011: Mindgruve’s Top 3 PredictionsAs 2010 comes to a close, we’re recapping Mindgruve’s Top 3 Predictions for 2010 and looking forward to what 2011 will bring. First, at the beginning of 2010, we said SEO and social media would be huge and they were. In addition to Google and Bing’s search results that feature Facebook and Twitter posts, Clickz notes that link building through social media can help generate leads, while the recent Facebook-Bing partnership indicates the growing importance of social media’s relationship with search. Second, as the use of smartphones and location based mobile apps increased, so too did the growth of geo-targeted special offers. Keeping in line with American Express’ research which finds that one of the top five consumer buying trends is checking in to claim deals. Finally, though Twitter was big for business, we believe Facebook’s ability to customize and personalize content took the lead as it launched Facebook Places and Facebook Deals (Gap’s overwhelmingly successful Facebook deal comes to mind), while use of FBML tabs increased with many companies, such as Procter & Gamble, creating branded shops within Facebook. Moving into 2011, we’re armed with our three predictions for what will make its mark on digital media. 1. Visual Impact With technology like Google Goggles, we believe we will see more brands extend their traditional marketing by directing consumers, who will snap pictures of products or promotions, to conversion-centric mobile hubs. Though only a handful of brands are testing out the popularity of the goggles, it’s worth mentioning that mobile photo application Instagram sees “two to three photo uploads per second” and mobile photo sharing applications are increasing. This is important because it’s highlighting the visual shift away from text-based content in real-world settings, giving us a glimpse of consumer interests and their willingness to view the world through a phone. 2. Television Plus To leverage the user’s new viewing habits advertisers must take advantage of existing channels (social sites, websites and online broadcasters) to deliver ever-increasing opportunities for personalized engagement through the new technology. We’ve already begun to see advertisers seamlessly adapt to the shift in television with shorter ad formats. Furthermore, with the introduction of more integrated marketing like that of Columbia Sportswear and a “real-world testing environment” for interactive TV (backed by CBS and Time Warner), it’s clear that the need to provide branded, engaging experiences doesn’t end with TV, but could now start there. 3. On the Move Marketing The takeaway: consumers are on the move and unlikely to sit still in 2011, meaning marketing efforts will have to move as well. With mobile phones, as well as tablets and laptops, the need for instant gratification and convenience is growing, as is the use of QR codes, in-app advertising and geo-targeted mobile ads. Brands will need to adjust their mobile websites, traditional and digital marketing campaigns, and mobile email strategy (an important factor to play up since RingCentral discovered a large majority of business professionals do business through a smartphone) in order to fit into a consumer’s on the go lifestyle by offering targeted, topical points of interaction. There you have it! Our predictions for 2011. Since new trends are rapidly developing, we’ll continue to keep our finger on the pulse of the industry, bringing you insights and best practices. We wish you a happy holiday and an even happier new year! |
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Oct
13
2010
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In App Advertising: Reaching Target Demos in New WaysMarketing within apps and games is revolutionizing how marketers reach new consumersDue to the continued innovation of the smart phone, mobile apps have become a huge part of the new media industry. In particular, mobile games have seen a big benefit from this rise in popularity, accounting for 5%, or $500 million, of U.S. gaming sales in 2009 alone. These new mediums have given marketers a whole new venue to reach its specific target audiences directly and engage them in a way they have never been able to before. There are many advantages to the use of mobile ads and we believe that they will become a very effective marketing method due to their specificity and diversity. One advantage is the potential for massive exposure because there are now over 49 million smart phone users. Recent mobile phenomenon such as Angry Birds and Words With Friends has shown that it is possible for marketers to get millions of impressions from a single app or game. Compared to console games which feature less intrusive advertising, mobiles games offer more direct advertising in order to leave an impression on its audience. This new medium also allows for a wide range of creative possibilities because of advanced smartphone technologies such as touch screens and gyroscopes that result in more clicks. For example, Greystripe has shown that their interactive ads for Sony Pictures Home Entertainment increased overall product awareness by 19%. Advertisements can now be just as engaging and interactive as apps themselves which will leave a bigger impression on users. Aside from engagement and production, there are also significant advantages demographically. Mobile ads allow marketers to more accurately and effectively target advertisements toward certain demographics. In general, smart phone users are a valuable demographic because they are generally between the ages of 18 and 35 and have a large steady income. However, ads can still be placed within many games or applications to reach many specific demographics, making marketers campaigns much more effective. Marketers also have the option of reaching selected demographics by creating ads for a specific app store. Android users tend to be younger than Apple users while Apple users tend to be wealthier and more educated. Finally, ads can be highly localized because of most smart phones built-in GPS capabilities. This makes them particularly useful for local businesses and companies looking to reach potential consumers in a new and captivating way. Mobile ads are an exciting addition for marketers looking to publicize their products in new mediums. They offer a different level of diversity, creativity and engagement that is difficult to find in other marketing venues. With many companies redeveloping their digital strategies and embracing in app/game advertising, innovation is sure to continue and these ads will become a mainstay for marketers moving forward. |




