We all know the drill – the morning scramble for the phone, the feeling of anxiety when we see the dreaded 4% battery warning on our tablet, the endless amounts of browsing, scrolling, liking, tweeting, texting, flappy birding, and so on.
What does this obsession mean for consumers? … Well, it probably means we need to find a new hobby, preferably outdoors.
But, what does this mean for advertisers? … They’re salivating. And rightfully so.
I’ll explain why.
The money is there.
Mobile accounted for 3.7% of all ad spend in 2013 and is projected to account for 8.4% of all ad spend in 2014. Global mobile advertising spending is forecasted to rise 37% to reach $18 billion in 2014, and will only continue to rise thereafter. Considering our mobile devices are within 10 ft. of us 20+ hours a day, I’m willing to bet on mobile.
That’s a lot of money, but how do I reach my audience?
We have precise targeting methods at our disposal.
There are a number of ways for advertisers to target a mobile user, but I will focus on three that are currently trending and can have major impacts for a brand. These include demographic, location, and behavioral targeting.
When I use they*, I am referring to a brand’s target market, AKA their potential consumers.
So, what do we know?
We know exactly who they are.
Demographic targeting is possible by using the aggregate of thousands of demographic statistics including: age, gender, income, language, ethnicity, etc. – all available for purchase. This form of targeting is very similar to demographic targeting for television, radio, or print. However, mobile has much more data available.
Example: Brand A wants to target Hispanic males, aged 18-24, that make between $25-50K annually, and own iPhones. Brand A can accomplish this by purchasing data from an ‘audience pool’, allowing them to serve mobile ads that are tailored specifically to this particular group.
No money wasted there.
We know exactly where they are.
Location targeting is based on a consumer’s location and current activity. We’ll call it ‘real time advertising’.
Example: Consumer Jane is shopping at her favorite brand A’s store and decides to leave to browse competitor brand B’s selection.
By using location-based data, brand A can identify that Jane is shopping at brand B’s location and has the ability to serve a coupon to Jane’s mobile device in real time.
So much for those Nikes, she just got 40% off at Reebok.
We know exactly what they’re doing.
Behavioral targeting is based on consistent actions taken by the user. Data is gathered from 3rd party partners (thank you wireless companies, banks, airlines, etc.) and is used to build a ‘target profile’.
Example: Consumer Joe travels frequently from San Diego to Phoenix for work and always needs to rent a car. By purchasing the appropriate data, brand A can identify these trends and serve Joe’s iPad ads for a rental car either the day before his flight from San Diego, or the minute he lands in Phoenix.
Joe has no choice but to book with brand A.
Next time you scramble for your phone in the morning and get served an ad for Taco Bell’s new waff-laco, you’ll know why.
If you’re interested in learning more about mobile advertising solutions, let’s chat!
Because chances are you read this on your mobile device, and I already knew that. 😉