As consumers, we’re attached to our phones. We’re spending more time watching videos, using social media, playing games, and shopping on our phones than ever before. And in part because of this, mobile advertising has grown into one of the biggest opportunities for businesses looking to connect with their audiences.
However, how do companies know if their mobile advertising is performing well? And where is mobile advertising going in the future?
In this blog, we’ll share a breakdown of what mobile advertising looks like today, how companies measure success, and where we think it will all be in 10 years.
How We Measure Success in Mobile Advertising
Let’s say you have a small business, and your money is being spent to serve mobile ads on apps. You would naturally want to know: Do they work? Are there people clicking them? Are they buying anything? This is where measurement comes into play.
The following are the major metrics used in mobile advertising:
1. Click Through Rate (CTR)
This is the percentage of people who clicked on your ad after seeing it. A higher CTR implies your ad creative is engaging or interesting.
2. Conversion Rate
This metric measures the percentage of people who did something after clicking the ad, such as installing your app or buying something.
3. Cost Per Install (CPI)
CPI is the amount of money you spent for every person who installed your app from the ad.
4. Return on Ad Spend (ROAS)
ROAS is a measurement of how much money you made for every dollar spent on ads.
5. Retention Rate
Retention is an important metric that indicates whether users return after the initial visit; retaining users can often be more valuable than acquiring new ones.
Global spending on mobile advertising reached $400 billion, making it the largest form of digital advertising in the world. This shows how serious companies are about mobile and how important it is to get the strategy right.
Apptrove: Helping Brands Measure What Matters
While placing ads is one thing, understanding how well those ads convert is entirely different. That is why businesses use one of the several Mobile Measurement Partners (MMPs) like Apptrove.
Apptrove helps brands measure where their app users are coming from to detail their journey. For example, if an ad ran on Instagram and prompted someone to install the app, Apptrove was able to measure the journey from when the ad was clicked to when your app was installed to any in-app purchases.
This is what makes Apptrove beneficial:
- Measures installs and user behaviour across channels
- Identifies ad fraud by tracking fake clicks or installs
- Delivers concise reports to assist in decision-making
- Allows you to compare which ad channels provided the best value
With tooling like Apptrove, companies can invest their ad budgets in smarter ways, and that is where mobile performance advertising becomes most effective—spending where performance is proven.
What’s Next in Mobile Advertising?
Mobile advertising is an ever-changing field to predict. Here are a few predictions we could see in the coming decade:
1. More Personalisation that is Refined.
Ads will be even more personal than they have been in the past. Rather than irrelevant promotions, the ads shown to users will be based on their interests, behaviours and locations.
2. Continued Growth of AI and Automation
Artificial Intelligence will definitely be a large part of where ads are shown, when, and to whom. This will aid in improving the efficiency and results.
3. User Privacy Will be a Continual Concern
After major changes such as Apple’s ATT (App Tracking Transparency), there is going to be a large expectation around user privacy for the foreseeable future. Advertisers will need to find a way to strike a balance between privacy compliance and performance.
4. Performance-based models will continue to grow in popularity
More businesses will use a performance-based mobile advertising model, which means they will only have to pay when a user clicks, installs or makes a purchase not just incurs an ad view.
5. Voice and AR ads
With this continued growth in smart assistants with voice prompts and AR interactions, there is a possibility we will begin to have ads that talk back to us or embed into our real life!
Conclusion
Mobile advertising is no longer just about displaying ads. It’s about displaying the right ads to the correct audience and understanding what’s happening after the ad is displayed. Brands can utilise CTR, ROAS, and retention metrics to get a broader understanding of what works and what doesn’t.
Mobile Measurement Partners (MMPs) like Apptrove are reducing the difficulties of measuring mobile performance, tailoring campaigns, and optimising ongoing campaigns. With the emergence of pragmatism in performance optimization, businesses investing in mobile performance advertising or performance-based mobile advertising should be experiencing trackable, measurable results.
The future of mobile advertising will be smarter, faster, and more personal than before. Armed with the right data, right tools, and right mindset, businesses of every size can leap into this ever-evolving mobile landscape.
This Article published By Busnessceo.co.uk Team.
