How To Capture The $22B Mobile Advertising Opportunity With People-Based Marketing
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.
Latest News
Enjoy A Hahn Solo… And May The Fourth Be With You
This May the fourth Hahn will celebrate alongside Star Wars fans rewarding their passion via a giant Hahn travelling solo through the sky. It’s the one day of the year when all sci-fi fans rejoice and giggle to themselves and Hahn in partnership with Thinkerbell, UM and Affinity is celebrating with an out of this […]
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.