Although traditional publishers have focused on creating mobile and web apps few have managed to mix mobile advertising without being too intrusive. Luca Ascani, Chairman and Co-Founder of Populis, argues that the time has come for European publishers to take mobile advertising seriously.
The Growth of Content on the Move
The rise of mobile advertising has caused a major stir in the media and advertising world. The mobile revolution has finally reached the shores of the advertising world and after social media, mobile advertising has been recognised as the next game changer.
A recent Gartner press release announced that annual mobile advertising revenues will rise to 5132 million dollars in Western Europe by 2015, revenues almost 20 times higher than in 2010. Further, the report states that “North America and Western Europe are the regions where mobile advertising budgets will grow most, representing 28 percent and 25 percent of the global market by 2015.”
For a long time, the potential of mobile advertising has been underestimated but now it is being catapulted into a new era by the mass adoption of smartphones and tablet PCs.
From 2010 to 2015, global internet access is estimated to quadruple in size and the explosion of mobile devices represents one of its main driving forces[2]. Whereas growth for desktops and laptops is estimated at around 25 and 28 percent each, the sale of smartphones (195%) and most of all the phenomenal increase in media tablets (750%), will push mobile advertising to new horizons.
Mobile advertising however is not just essential for advertisers alone. It is also an opportunity for the struggling traditional publishing industry to adapt to behavioural change and look for alternatives to some of their broken business models.
Mobile Content: A Bright Future for Advertisers
Mobile advertising might be still in its infancy in Europe, however, Japan depicts a clear future on mobile customer behaviour and interaction which Europe is likely to follow. A recent Google report published in association with the Mobile Marketing Association (MMA)[3] states that 78% of Japanese web users access the Internet via their smartphones as opposed to 59% of UK web surfers and 55% in France. 45% of Japanese use their smartphones to purchase online compared to only 28% in Britain and 17% in France.
What is important to notice however is that in Japan 43% of business sites are optimised for mobile use, compared to only 17% of all UK business sites, 12% of French sites and 37% of German sites. Clearly, the challenge is set now for European businesses to do the same. Advertising has to adapt to the channels their customers are increasingly using. In today’s competitive world, business sites cannot afford to ignore such a vast number of potential customers who want to consume media and potentially make purchases via their mobiles.
Mobile: A New Era For Online Publishers
Populis is anticipating that mobile advertising will represent a huge source of revenue potential in future. Currently, across its network of 550 websites and specialised blogs, five percent of its traffic originates from mobile devices; a number that is growing at a phenomenal speed. In a world where mobile phones have become our closest companions, brands are seeing mobile advertising as an attractive option, because it allows them to target certain groups with specific ads when we are least distracted.
Getting relevant and engaging content to these specific targeted audiences via mobile devices presents an exciting new market opportunity for online publishers, and mixing this with mobile advertising will be particularly lucrative if delivered in the right way. Although traditional publishers have focused on creating mobile and web applications, few have managed to mix mobile advertising without being too intrusive. Those who embrace new technologies and adapt to the changing content consumption landscape will emerge as winners.
The media, the publishing and advertising industries have reached a significant crossroads. You can swim with the tide of change, or fight against it. We decided to dive into fresh waters. Those that constantly innovate and ride the rising wave of mobile will succeed in this new era of online publishing.
Luca Ascani
Chairman and Co-Founder
Populis
http://www.populis.com