Mobile advertising – turning the dream into a reality.

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  • Published date: February 8, 2015

Since about 2005, every year has been the year when mobile advertising was going to explode.

In 2013 it’s expected Mobile Ad revenue will top $11.4bn after growing 20% in the last year, so it’s pretty safe to say we now live in a world where Mobile advertising has arrived and predictions now show over the next 5 years mobile ad revenue will rise faster than any other media.

While this sounds hugely impressive, by two key measurements Mobile advertising is failing to live up to expectations.

1) The revenues are not keeping pace with the time spent on the media, we now spend 4.5% percent of our time on mobile, but yet only 1.7% of ad spend is on the channel, and this gap is rising as smartphones become ever more popular and ever more used.

2) The value of mobile ads are still low, a typical CPM of $1.31, about 1/3rd of other digital ads and around 1/20th of TV.

What’s more the ability to monetize mobile traffic has never been greater, it’s the largest challenge facing some of the most important companies of our time, be it Facebook, Twitter or any content provider without a paywall.

But what most disappoints me is the very unambitious and extremely uncreative way that people have looked at mobile as advertising platform, it reminds me of how most digital ads have completely failed to make the most of the unique opportunities the channel has to connect with people in incredible ways.

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