Back in the good old days of newspaper publishing, print advertising was king. If you could create a catchy print ad, then your marketing agency could buy up print space in all of the relevant newspapers and make your client a bundle. The catch was that the newspapers knew how valuable that marketing real estate was, and marketing companies had to pay a pretty penny to get the best spots in the best newspapers.
When Internet website advertising started to replace print advertising, publishers started to feel the pinch. Many websites were offering their content for free in exchange for web traffic that would push up advertising rates, but the incredible increase in marketing real estate with Internet news publishing diluted the industry to the point where no one made any money.
Now everyone is shifting to mobile advertising and, since the banner ads don’t work on smartphones, publishers have to change their strategy again. It has taken some time, but it looks like publishers are finally understanding how to turn mobile advertising into real revenue.
The Analytics Are Helping
Since banner ads are out for mobile advertising, it is important to pinpoint mobile advertising so it reaches the right user at the right time. One of the reasons that many publishers have been able to increase the value of their mobile marketing real estate by a factor of three and four is because they understand their audience much better than they ever did. The use of mobile analytical software has allowed publishers to promise advertisers more focused results, and the value comes when the publishers deliver on those promises.
Ad Blockers Turned Out To Be Insignificant
When Apple announced that it would allow ad blocking apps on its new iPhone operating systems, publishers panicked because they thought that mobile advertising was dead.
But according to Recode.net, ad blockers do not touch the nearly $21 billion in advertising revenue generated by in-app advertising. As long as publishers can still advertise inside of their apps, they can make money. Publishers are taking that information and using it to create better in-app advertising that will increase in value over time.
The Problem Is Perception
According to Digiday.com, one of the big problems mobile advertising is experiencing is that companies simply do not understand how smartphone advertising without banners fits into a larger marketing plan.
Before publishers can really get over the hill they have been climbing to make mobile advertising profitable, they first have to get advertisers to understand that consumers have already made the move to mobile and it is time for advertisers to get in line.
The battle to get advertisers to accept mobile advertising is still a difficult one for publishers all around the world. But as advertisers start to realize that their consumer target audience has moved to mobile platforms, it is becoming easier for publishers to add value to their mobile marketing real estate and start to generate appreciable revenue.
What are alternative methods advertisers can use on mobile platforms? Will mobile specific advertising completely replace banner ads?
George N Root III is a professional freelance writer who has expertise in topics such as Internet marketing, business, advertising, and personal finance.
Want more like this? Subscribe to Recruitment ADvisor and get the best news straight to your inbox!