While more and more consumers are shifting to mobile, the art of mobile advertising is still using Jurassic concepts such as banner ads, a format that s known to only marginally support advertising campaigns. However, the storyline is significantly changing now.
Today’s, is a market that has evolved from being hungry for better creative that to a market where a creative virtuous cycle has been created.
What is a Creative Virtuous Cycle?
This cycle refers to actions taken up by publishers to increase the inventory of high impact advertising formats such as video and rich media that are eventually met by positive actions by buyers to build and deliver these ads, compelling them to build and publish more of them.
Why has this Cycle been formed?
• Publishers are able to enjoy significant customer experience and economic value
• Advertiser are able to present their brand and message in a much better format
• Agencies and buyers are able to witness significant performance gains for campaigns
• Gaining the ability to support almost any kind of ad format.
Closer Insights into the Cycle
It has been found that video, rich media and interstitial ad formats are growing anywhere between 194% and 516% taking in a bigger share of the total inventory available. However, as off now, these formats only represent a 35% of our total inventory. Taking into consideration the current pace, it is expected that these formats will take over 50% of inventory within the coming year.
That said, it has been found that video, rich media and interstitial ad formats are growing between 178% and 404% and taking an increasing share of the ads delivered. The difference between these two is that the growth rates from media buyers, i.e. the ads delivered are growing faster as they shift to towards more creative talent that is responsible specifically to build ads for the mobile platform and implement extremely aggressive mobile strategies.
That said the value of the buyers as well as the publishers is rather clear. With CPM premiums continuing to be consistent and rather impressive, along with the combination of high growth rates from media buyers and publishers suggest that the market is only about to get stronger.
Consider these Statistics
• Expandable banners (rich media) are 26 times more effective than static banners.
• Interstitials are 8 times more effective than banners
• Video formats on expandable formats are 8.5 times more effective than static banners
• Consumers are known to spend an average of 11 seconds on mobile display or expandable formats. However, they spend 4 seconds on interstitials.
The popularity of mobile technologies is significantly altering advertising landscapes. The mobile has become the primary screen of most consumers hereby demanding advertisers to buck up their mobile game.