Are Mobile Ad Networks Under Threat?
Mobile Ad Networks aggregate advertising inventory and match it with advertisers, much as online ad networks do. Billions of consumers is carrying around Internet-connected mobile devices for up to 16 hours a day whereof the Mobile audience has exploded. Now it´s all about targeting the audience – and give them what they deserve!
“Ad networks play an important role in mobile [because the] audience is fragmented across a large number of devices and publishers,” says Michael Collins, CEO of mobile ad agency Joule. “The role of the network is that they are able to aggregate audience at scale. There are many [networks] all at different stages of their evolution, some stronger and more robust, but still a good amount of innovation is going on in the market.”
Mobile ad networks face pressure from demand-side platforms (DSPs). These function similarly to ad networks, in the sense that they help match advertisers with inventory. Core RTB tasks is to selects the ad network that can best monetize ad space and impression to optimize eCPM between Publisher and Advertiser. The itchy part for DSP´s, is their lack of capability to laser-focus on utilizing customer data as the key ingredient of each customer-facing activity!
This is the bottom line conclusion from a very interesting BI Intelligence report;
- Only the largest publishers have the size and scale to go it alone in mobile advertising.
- Mobile ad networks are being squeezed by ad exchanges and DSPs (demand-side platforms), but can maintain their central position if they keep an edge in audience targeting and measurement.
- Many brands lack the mobile destinations necessary for an effective mobile ad campaign.
- Mobile marketing can produce as much or more revenue for agencies as mobile advertising alone.
- Mobile native ad formats are finding success with TV-style content break ads, and opt-in reward schemes.
I could not agree more on the conclusions in this report. Mobile Ad Networks can perfectly well live side by side with DSP´s and Ad Exchanges assumed a unique positioning within a crowded ecosystem. We believe in keeping everything simple and pure by matching audience and brand seamlessly, says Tor Olav Haugen, co-founder in ThumbAd.com. Combining Mobile Ad Networks with RTB will actually benefit both Publisher [improved eCPM] and Advertiser [right audience]!
According to Mr. Haugen ThumbAd is offering three Ad products to Advertisers and Agencies adding value to both Publisher and Advertiser;
- Broad reach across multiple Publishers delivering Mobile Display Ads
- Advanced targeted advertising based on relevance, real-time targeting and contextual behaviour
- Local advertising based on the end user’s physical location
About
ThumbAd.com is the owner of a successful and innovative Mobile Advertising Platform. The company monetizes, add value and deliver additional advertising revenue to Publishers, and offer a unique expertise for Advertisers. The Company delivers Better Mobile Click Through Rates by Contextual Relevancy and Real Time Targeting.Extraordinary Mobile Insight & Real Time Bidding Next Up!
Real-time bidding, or RTB, is a style of programmatic buying in which digital advertising opportunities are auctioned off in real-time. The auctions take place in milliseconds as advertisers bid on the right to show you an ad immediately after you open an app or click to a new web page.
On the desktop it’s a powerful technique to deliver the right ad to the right consumer at the right time and place. On mobile, it could be more powerful since consumers take their devices everywhere.
RTB combined with “big data” real time analytic´s gives an extraordinary insight, creating a win-win scenario for Advertisers and Publishers, according to Tor Olav Haugen, co-founder in ThumbAd.com. In order to perform in the Mobile Advertising space of today, longterm focus is required in order to deliver higher retention rates, customer lifetime value growth, and revenue growth to our customers.
Leveraging on customer data;
- Individual level tracking of each customer and visitor, rather than the “impression” or the “traffic data”.
- Tie numbers to actual customers rather than looking at them as “uniques”;
- track customers across multiple devices Track a single customer everywhere, across all their devices, no matter how many there are
- Be laser-focused on utilizing customer data as the key ingredient of each customer-facing activity
However fast growing Mobile is, the user numbers are still not yet big enough for publishers to dedicate direct-sales resources to the channel, and given the legwork and tech complications that still surround it, there’s just no simple way to combine the desktop-plus-mobile buy.
premium publishers realizing they could cut out the legwork and overheads of direct deals, but apply exactly the same stringent rules around transparency, pricing and exclusivity, while fully leveraging their data assets. And though mobile real-time bidding is embryonic, as are private marketplaces in mobile, there’s no reason why exactly the same improvements in efficiency couldn’t be applied to this channel, too.
In conclusion, if mobile advertising were a simple bolt-on to programmatically traded display, complete with quality mobile sites and apps, and similar controls to the ones publishers are used to when they sell direct, the sky becomes the limit – according to Jay Stevens is senior vice-president and general manager, international, at the Rubicon Project
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