Mobile advertising is an operative marketing tool of modern communication. It is based on the use of mobile communication technology and mobile devices to deliver advertising messages. It is not restricted to individual actions or services, but includes the overall concept of the campaign-oriented communication, from advertising messages to direct customer dialogue on the mobile device.
Advertisers have multiple communication channels available to establish contact with customers when designing a mobile advertising campaign. These include the mobile Internet, mobile applications, mobile messaging, and mobile video or TV. Moreover, multimedia content or applications can be sent to potential customers through traditional SMS / MMS ads. A large number of mobile advertising formats are now available because of the technological advancement of mobile devices. Mobile Internet also increases the use of mobile banner advertising.
If used properly, mobile advertising can be a solid marketing tool. Otherwise it can cause damage to the image of the advertising company or constitute a bad investment. To use this medium successfully requires knowledge of the technology as well as a high sensitivity in dealing with the customer.
Nowadays, smartphones or tablets are personal items that are constantly carried around. Therefore, advertisers hope for high accessibility from almost anywhere at any time. Due to personalization, wastage in mobile advertising is relatively small, because any potential customer gets delivered advertising that is tailored to their customer profile. Wastage occurs when individuals are hit with ads of an advertising campaign that are not part of the target group.
Another advantage is the possibility of interaction without media breaks. This means that an interested end user can get further information on an advertised product or may request to participate in a contest or survey, without ever having to put down his device. Furthermore, mobile advertising is a cost-effective way of direct marketing. Its success is evidenced by a relatively high response rates of 10 to 20 percent. In contrast advertising mediums such as letters, e-mails or print ads are significantly lower.
Since mobile devices have a personal value for the user in connection with high accessibility, unwanted advertising messages are much more disturbing than on other distribution channels. After all, users can hardly ignore them.
Although mobile phones and tablets now have a high technological standard, there are restrictions in the design of advertising messages, due to the limited user interface. For example, images cannot be too large or texts too long because of the small size of the device.
Mobile advertising is currently in a complex phase of development, which is influenced by a variety of processes. Current mobile technologies, market trends, and consumer behavior must be taken into consideration when implementing mobile advertising concepts. The five most important factors which advertisers should keep in mind are:
1. One should be able to offer their customers added value. This means that the product or service must provide the customer an additional benefit.
2. A company should develop basic standards and concepts in mobile advertising in order to succeed.
3. Mobile marketing or advertising should be adapted to the existing marketing mix and be integrated.
4. To keep wastage low and market a product or service successfully, consumer trust should be established.
5. The lack of measurability of advertising effectiveness is still a problem. For this reason, it is important to build up the trust of companies wishing to advertise by offering case studies, for example.
Website operators that use mobile advertising correctly and pay attention to content and context can increase their sales significantly. According to the “Mobile Advertising Survey 2012” one-third of all those surveyed have visited the website of the advertising brand at least once. More than 20% have clicked the advertisement directly. For 14%, mobile advertising led to the purchase of the product. Moreover, a steady growth of surfing with mobile phones has been recorded, which creates an increasing number of potential customers.