Mobile is a shining star of performance marketing. According to the Interactive Advertising Bureau (IAB), for the first time, mobile ads account for the majority of digital ad spend. The IAB 2016 Internet Advertising Revenue report says that mobile ad revenues increased 77 percent to $36.6 billion in 2016, or 51 percent of total digital ad spend. Desktop search, the next biggest category, accounted for 24 percent of the total.
The IAB also says that the $36.6 billion spent on mobile ads included $17.2 billion for mobile search and $18.1 billion for mobile display.
I’m not surprised by the growth in mobile ad revenue. The ad spend reflects changing consumer behavior and the power of major publishers such as Google. The number of mobile searches on Google surpassed desktop searches two years ago. And Google has been changing its algorithms to force brands to respect the power of mobile. For instance, Google’s 2015 “mobilegeddon” algorithm rewarded mobile-friendly web pages with higher rankings for searches done on Google.
And yet, as important as mobile has become, mobile is still a contextual experience. To me, the real excitement and long-lasting value for advertisers comes from creating meaningful online advertising that appeals to omnichannel consumers.
Omnichannel consumers interact with brands through a variety of devices and channels, including social media, your website, display ads on other sites, and search results – on mobile phones, desktops, tablets, in games, on television, and through voice-activated assistants, to cite just a few of the proliferating channels and devices that shape the consumer-brand experience.
You get a better picture of how complex the advertising landscape really is when you dig into the IAB report and sift through the variety of ad formats that account for digital spend. (The report’s appendix alone, which details the pricing models and ad formats, is instructive.)
It’s important that businesses understand the nuances of advertising through different channels and devices. For instance, Tim Colucci at True Interactive has been blogging lately about the distinct challenges and opportunities of video advertising. (Here is an example.) At the same time, I believe it’s more important to coordinate mobile in context of the understanding your consumers’ journeys from awareness to purchase to loyalty. Yes, mobile advertising is probably going to be important to just about any brand, but how and when you spend on mobile advertising may differ dramatically by channel (e.g., Facebook, Snapchat, Instagram) and device depending factors such as what stage a customer is in the buying decision and the time of day they’re interacting with your brand.
So let’s celebrate and appreciate the rise of mobile ad spending. But even more importantly, let’s keep our focus on the broader consumer journey and invest into experiences that create and retain customer relationships throughout the journey, one impression, channel, and device at a time.
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