With the development of free content websites online, the companies running them have had to find a source of revenue to keep supplying their service to their customers. The leaders in this field are the tech giants Facebook and Google, where ads account for 80 and 90 percent of their revenues respectively.
As smartphone ownership is only set to grow in the coming decade the question playing on the minds of many in the online community is how do you build a business around advertising on mobile and what if you can’t?
Mobile is different from desktop
People use their smartphones differently to their desktop computer. For example, if they are searching for a shop it is more then likely they are in the vicinity of the brick-and-mortar shop itself, so directions to it are going to be of paramount importance.
One in three mobile searches on Google are searches for local information, people wanting to find a restaurant for lunch, a bank, a newsagent.
Google have researched smartphone users and are continuing to build their understanding of how customers use their mobiles day to day so that they can tailor more intuitive ads. ‘Click To Call’ buttons have been rolled out for use by insurance companies, location extensions for businesses like a dry cleaners or restaurants (places you have to visit).
Google found that of smartphone owners “59% visit a business and more than 40% purchase after looking for local information on their phones”. Mobile search really is a powerful tool for marketing businesses.
Facebook Focused on Mobile
Like Google, Facebook has also recognized that mobile advertising will be vital to its stability as a company. During 2012 Facebook completely rebuilt Facebook for iOS making it faster and more reliable. It also became more deeply integrated the platform with iOS 6.
With new ad products such as the ‘Mobile Apps for Ads’, where a user can be brought straight to the app download page from the mobile ad, Facebook is set on taking mobile advertising revenue from its current 23% of advertising revenue to 50% in the coming years.
In Conclusion
With the two luminaries of the online world firmly leading the way in the innovation of mobile advertising, future revenue streams look to be secured. Marketers are also safe in the knowledge that mobile advertising can finally produce the results its been promising for years.
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