How To Capture The $22B Mobile Advertising Opportunity With People-Based Marketing

How To Capture The $22B Mobile Advertising Opportunity With People-Based Marketing
SHARE
THIS



You’ve heard it before: this is the year of mobile (again), says Michael Twomey, SVP and MD at people-based marketing for Signal in this opinion piece. But before your eyes glaze over, consider some important insights about mobile advertising that were recently unveiled by Mary Meeker in her annually-anticipated Internet Trends Report.

Meeker states that advertising on the internet is accelerating quickly because of (you guessed it), mobile ads.

The growth of mobile ad spend is already tremendous but marketing spend is actually still “over-indexed” on other ad formats like TV when considering where consumers spend the majority of their time consuming media.

The bottom line is a $22 billion mobile growth opportunity in the US alone as marketing spend catches up with where consumers are.

It’s the same story here in Australia with PWC’s latest annual Entertainment & Media Outlook predicting that mobile advertising will account for 41 percent of the total internet advertising market by 2020, which represents $7.4 billion in mobile ad revenues.

But with this growth opportunity comes a catch. Meeker also reported on ad blocking – most of which is done on mobile devices. PageFair findings show that mobile ad blocking grew 94 per cent YoY to 420 million users globally, while desktop ad blocking increased just 16 per cent to 220 million users as of March 2016.

Marketers shouldn’t be too surprised by that – after all today’s hyper-connected consumers have high expectations, short attention spans and a long list of brand suitors at their fingertips. They don’t have the patience for mobile ads that annoy them, take too long to load, and suck up their mobile data.

If companies really want to make the most of the $22B mobile advertising opportunity, then building meaningful, useful, and personalised experiences across devices must be a top priority.

It is this premise – the idea of meeting consumer needs by being more relevant and contextual – that is driving the next wave of digital marketing.  Cookie-based approaches that use browser-based bits of code not made for mobile devices will soon be replaced by people-based marketing.

This new discipline uses first-party data to reach and engage customers with immediacy and relevancy wherever they are across any device.

Brands are already sitting on a tremendous amount of precious first-party data which can be a gold mine. Over two-thirds of marketers in a recent Signal survey said that first-party data provided the most powerful campaign lift and the highest increase in customer lifetime value – which is great news for brands chasing a lift in their return on advertising spend.

Magic happens when first-party data is used to reach customers at precisely the moment that they are in the market for a product of service.  This is people-based marketing, and it’s getting a lot of buzz at the moment for the following reasons:

1. It targets customers with pinpoint accuracy

Consumers are a tough crowd these days. Their expectations of brands are higher than ever, especially when they’re online and banner blindness is on the rise.

People-based advertising is powerful because it uses the wealth of information brands already have about their existing customers to reach the right person with the right message. It gives digital advertisers an easy-button for instant relevancy and targeting efficiency.

2. It cuts the fat from ad spend

I know no-one wants to hear Wannamaker’s seminal “Half the money I spend on advertising is wasted. I just don’t know which half” quote again but the fact is that targeting broad demographic segments or unreliable collections of web cookies leaves heaps of room for error.

By linking ads to people, rather than cookies or device IDs, people-based advertising enables brands and media agencies to “buy” only the people they want to target.

3. It counts on real people for real results

The cookie-based tracking methods that have been used for 20 years don’t work well across web and mobile devices, wreaking havoc on their ability to target ads and measure outcomes with accuracy. According to a 2015 Econsultancy poll of digital marketers worldwide, less than one-third are capable of recognising customers across web and mobile.

People-based marketing solves the cross-device challenge by tying back campaigns to actual people. So advertisers know who they are reaching, who is converting, what campaigns are driving conversions, and which audiences and campaigns are driving more revenue.

4. It takes advantage of the highest-quality data

People-based marketing is powered by the most fresh and accurate data that a brand can use: its own first-party data. In a recent Signal study, 82 per cent of marketers said they plan to increase their use of first-party data this year because of the value it can add to their customer understanding and engagement.

Because first-party data is based on the brand’s direct interactions with customers, it is the key for deriving immediate, unique and granular customer insights – authentic insights advertisers will never glean from assumptive third-party “lookalike” data.

5. It sees the entire customer journey, not just one stop

As customers engage with brands across the web, mobile apps, email, brick-and-mortar stores and other touchpoints, they may be represented by multiple fragmented profiles. A people-based approach pulls all this online and offline data together to create a single view of the customer.

Advertisers can therefore understand the cross-channel, cross-device habits of customers and the different steps they take on their path to conversion.

Meeker’s predictions certainly offer a bright outlook for mobile advertising. But, if companies don’t consider how to deliver better mobile experience, the $22B opportunity results in billions of dollars in wasted spend, instead.

The entire advertising ecosystem – brands, media buyers, and publishers – needs to embrace a people-based approach for precision targeting across devices, which will deliver relevance and improve return on advertising investments.

 

Please login with linkedin to comment

Latest News

Infographic: Only 13% Of Aussie Media Agencies Are Considering Voice Marketing Strategies
  • Advertising
  • Marketing
  • Media

Infographic: Only 13% Of Aussie Media Agencies Are Considering Voice Marketing Strategies

IAB Australia has issued a handy infographic providing further insights on how the media buying community is using audio advertising across all platforms. According to the infographic, the number of media agencies using podcast advertising regularly has nearly tripled in the last year (from five per cent in December 2016 to 14 per cent in […]

KFC Customer’s Rage Labelled “Most Over-Dramatic Moment In TV History”
  • Marketing

KFC Customer’s Rage Labelled “Most Over-Dramatic Moment In TV History”

KFC stores in the UK have run out of chicken and the secret herbs and spices-starved Poms are going bonkers over it. As reported on B&T yesterday, a delivery driver dispute has meant that 600 outlets around the country have had to close due to a lack of Zingers and nuggets. Such is the palpable shock around the nation, police […]

by B&T Magazine

B&T Magazine
Now Screen Repositions Organic Care Brand With New Campaign
  • Advertising
  • Campaigns

Now Screen Repositions Organic Care Brand With New Campaign

Aussie agency Now Screen has teamed up with Organic Care to reposition the brand in what has become one of the most competitive FMCG spaces. The new campaign, ‘Caring Comes Naturally’, celebrates what Organic Care has created since its inception: products that are as good for your body as they are for the environment. In […]

Glass Boxing – Why Brands That Prioritise Social Responsibility Will Win
  • Opinion

Glass Boxing – Why Brands That Prioritise Social Responsibility Will Win

In this guest post, Edge’s senior strategist, Abbie Dubin-Rhodin (pictured below), argues its the brands with a social conscious that are already winning over customers… For brands to contend in an ever-changing world, they need to be ‘glass box’ ready. Brands that prioritise a culture of social responsibility are well equipped to capitalise on this trend, while […]

Opinion

by John Bastick

John Bastick
OMD’s Jessica Torstensson Joins Wavemaker As Group Business Director
  • Advertising
  • Media

OMD’s Jessica Torstensson Joins Wavemaker As Group Business Director

GroupM’s newest media, content and tech agency, Wavemaker, has appointed Jessica Torstensson to the role of group business director. Torstensson joins Wavemaker from OMD Australia, where she was the client lead on the McDonald’s Australia account. Prior to that, she worked both agency and client-side in her native Sweden, including at PHD Sweden, Mindshare Sweden, […]

Isobar Launches VR Documentary ‘Carriberrie’
  • Media
  • Technology

Isobar Launches VR Documentary ‘Carriberrie’

Digital agency Isobar has partnered with director and producer Dominic Allen to create a ground-breaking virtual reality (VR) film celebrating the depth and diversity of Indigenous dance, music and song. The world premiere of the 360° live-action documentary, Carriberrie, will be held tonight at the Australian Museum in Sydney. Narrated by award-winning actor and dancer […]

Study: What Marketers Really Want From An Agency
  • Advertising
  • Marketing
  • Media

Study: What Marketers Really Want From An Agency

A new study has delved into the murky waters of marketer/agency relationships and found that creativity still tops the list for winning new business. The study, albeit a US one, examined the relationships of some 736 brands and their agencies and found that satisfaction levels in the relationship remained surprisingly high. Brand strategy firm, Provoke Insights, conducted the study […]

by B&T Magazine

B&T Magazine
Can You Speak Data?
  • Marketing
  • Opinion

Can You Speak Data?

In this opinion piece, Customology general manager Michael Barnard (pictured below) explains that in order to use data effectively, brands and advertisers need to speak its language. Customers are giving us their data, but we are still not using it effectively. Why haven’t we learnt how to speak data yet? Stating we live in the […]

Opinion

by B&T Magazine

B&T Magazine
Feeding Video Success After Facebook’s Update
  • Opinion

Feeding Video Success After Facebook’s Update

In his latest post, Hamish Brown, sales manager at Brightcove ANZ, takes a look at Facebook’s new update and what it all means for brands, particularly those ones who use it for video… There’s been a lot of talk about what updates to Facebook’s news feed algorithm mean for brands generally, but not much about what […]

Opinion

by B&T Magazine

B&T Magazine
Social Change Maker Profile: Emma Heath
  • Advertising
  • Marketing
  • Media

Social Change Maker Profile: Emma Heath

B&T has partnered with UnLtd to showcase industry heroes! Well, it's arguably more heroine in the case of Emma Heath.

by B&T Magazine

B&T Magazine
Ad Fraud: A Problem We Can Solve
  • Advertising
  • Opinion
  • Technology

Ad Fraud: A Problem We Can Solve

Unlike B&T's mystery office farter, this columnist argues ad fraud is a problem that can possibly be solved.

Opinion

by B&T Magazine

B&T Magazine
Why We Pivoted Our ‘Specialist’ Agency Five Times In 15 Years
  • Marketing
  • Opinion

Why We Pivoted Our ‘Specialist’ Agency Five Times In 15 Years

In this opinion piece, Gavin McDonough (pictured above, co-founder and managing partner of Urban, shares through his own experience some valuable advice for independent specialist agencies. In November 2017, my brother Ryan and I celebrated 15 years in business. We started business out of my front room in Melbourne in 2002 – not with any grand […]

Opinion

by B&T Magazine

B&T Magazine
W+K’s Susan Hoffman Chosen As 39th AWARD Awards Chair Of Judges
  • Advertising

W+K’s Susan Hoffman Chosen As 39th AWARD Awards Chair Of Judges

Susan Hoffman, co-chief creative officer at Wieden+Kennedy (W+K), has been appointed chair of judges for the 39th AWARD Awards. Known to challenge the status quo, Hoffman is behind some of W+K’s most memorable and game-changing ads, including Nike’s ‘Revolution’, Old Spice’s ‘The Man Your Man Could Smell Like’ and Chrysler’s Super Bowl spots starring Eminem and Clint […]

Experiential Agency Kreate Gets Bought Out By Staffers
  • Marketing

Experiential Agency Kreate Gets Bought Out By Staffers

Leading experiential marketing agency, Kreate Australia is embarking on an exciting growth strategy following its purchase by three of the agency’s existing management team from its UK founder, Steve Evans.

Hurry! B&T 30 Under 30 Entries Closing Friday!
  • Advertising
  • Marketing
  • Media

Hurry! B&T 30 Under 30 Entries Closing Friday!

This is a clarion call for B&T 30 Under 30 entries, although it's probably more mariachi band than angelic harbinger.

by B&T Magazine

B&T Magazine
The Hit Network Chooses Comedian Tanya Hennessy To Host Weekend Breakfast
  • Media

The Hit Network Chooses Comedian Tanya Hennessy To Host Weekend Breakfast

Southern Cross Austereo’s Hit Network has announced that rising radio star and comedian Tanya Hennessy will take over hosting duties for its weekend breakfast slot in 2018. Hennessy will bring content to the airwaves each Saturday and Sunday morning from 7am to 9am with a regular rotation of guest co-hosts. The self-described talker, not walker […]

Straight Up PR Wins Five New Clients
  • Marketing

Straight Up PR Wins Five New Clients

Health, wellbeing and lifestyle PR agency Straight Up PR has welcomed Changing Habits, Unichi Wellness, enerGi, SleepX, and Healthie Hampers to its client portfolio. Straight Up PR’s projects will include bespoke PR services and influencer marketing packages specifically focusing on communications strategy and execution, media and influencer relations, PR launch events, product seeding and gifting, […]

March One Creates ‘Cheese For Change’ Fundraising Campaign For White Ribbon Australia
  • Advertising
  • Campaigns
  • Marketing

March One Creates ‘Cheese For Change’ Fundraising Campaign For White Ribbon Australia

Independent creative agency March One has developed a new fundraising event for White Ribbon Australia that turns a social moment into a social movement. Starting on Thursday 22 March and going until Sunday 25 March, Cheese for Change will ask Aussies to create a cheese platter that matters by gathering friends, family or co-workers together […]

Sixth Annual IGN Select Awards Winners Announced
  • Marketing

Sixth Annual IGN Select Awards Winners Announced

The winners of IGN Australia’s sixth annual Select Awards were revealed during a huge special event at the Australian National Maritime Museum in Sydney on Friday, February 16. Some 225 Media & Game Publishers alongside 320 IGN Community Gamers attended the annual event. 2017 was absolutely crammed with terrific games and several categories were extremely tightly-contested. The top […]

Meet Your Mentors For B&T Bootcamp 2018!
  • Advertising
  • Marketing
  • Media

Meet Your Mentors For B&T Bootcamp 2018!

When it comes to an industry "who's who", you'll find there won't be too much who-ing with this impressionable lot.

by B&T Magazine

B&T Magazine
ANZ Unveils Its 2018 GAYTMs
  • Marketing

ANZ Unveils Its 2018 GAYTMs

Mardi Gras is only weeks away and B&T has already hoisted the mirror ball and donned the hotpants to bring you this.

International Creative Services Redesigns Business Model To Broaden Talent Offering
  • Advertising
  • Marketing
  • Media

International Creative Services Redesigns Business Model To Broaden Talent Offering

Marketing consultancy International Creative Services has announced a new roster of diverse creative and production talent to provide a fully integrated solution for advertising and branded content. The roster includes a broad range of global and local directors, animators, illustrators, motion designers, visual artists, light projectionists, photographers and cinematographers – many of whom Australia will […]

Dirty Data Done Dirt Cheap
  • Opinion

Dirty Data Done Dirt Cheap

Does the mere thought of data fog the brain and stuff the sinuses? Decongest immediately with this lozenge-like read.

Opinion

by B&T Magazine

B&T Magazine