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Essays

Mobile: the cornerstone of digital advertising

2016 is poised to be the year that progressive brands determine how their mobile strategy integrates within an omni-channel approach

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This year saw 78 per cent of Facebook’s revenue come from mobile, while Google declared it mandatory for an advertiser to have a mobile optimised website or risk being penalised in search rankings. Meanwhile, both comScore and IAB report that 87 per cent of mobile time is spent in-app. If 2015 is remembered as the year when mobile evolved from a simple budget line item to a core component of the advertiser’s digital ad spend, then 2016 is poised to be the year that progressive brands determine how their mobile strategy integrates within an omni-channel approach.

THE MOBILE APP ECONOMY IS BOOMING

Customers expect to find an app for everything. International companies, such as Uber and Airbnb, have led the way and local apps, such as VOX Cinemas, Careem and Souq.com have joined them in creating the new digital economy that has its foundation in being ‘mobile app first’. Airlines – like Emirates and British Airways – are transitioning their loyalty programmes and in-flight entertainment to mobile apps. Even retail banking, known for its conservative approach to new technology in relation to consumer privacy, is rapidly transitioning from branch banking to mobile app-based transactions.

MOBILE WITHIN AN OMNI-CHANNEL STRATEGY

Advertisers are searching for the ‘holy grail’ omni-channel approach that has clear lines as to which touch point or channel gets attribution for each sale across all devices – smartphone, tablet, desktop and television. Except customers don’t think about channels when interacting with a brand. Consequently, omni-channel is not exclusively about marketing; it’s about creating a consistent customer experience that spans across all touch points that influence the customer journey. Just think about how mobile is central in your own customer journey and behavioural habits. Knowing this, making mobile the foundation of an omni-channel strategy should be seen as the obvious choice. However, within this one device, mobile includes diverse channels and marketers must understand how to engage consumers from all mobile touch points – email, video, SMS, push notifications, mobile search, mobile native and mobile display.

DELIVERING CONTENT EFFECTIVELY

Mobile display offers an omni-sensory experience unrivalled by any other channel. Touch, sight, sound and motion combined with in-app ad functions such as ‘save to camera roll’ and ‘add to calendar’ provides the opportunity to extend the brand experience long after the initial ad interaction. If a message can be delivered via any other channel, then it’s not mobile first creative. Not only that but within the mobile channel itself, the messaging should be altered based on the mobile touch point.

For in-app advertising, programmatic media buying offers the ability to deliver a series of ads over time based on past user interaction and key perfomance indicicators. For instance, if your goal is to increase purchases but before a user can even buy they need to download the app and create a user profile, then start the series of ads with step one. Programmatic storytelling combined with tech-enabled dynamic creative is the most effective way to deliver mobile content.

MOBILE CRM IS ONLY PART OF THE PUZZLE

Mobile gives advertisers the opportunity to collect an extraordinary amount of data in real time. The convergence of mobile data with offline and online data is the best way to understand the evolving preferences and information of your customers and to keep your customers’ experience consistent, relevant and contextual.

Smart brands understand the importance of identifying their customers and are working to develop audience profiles to remain competitive. However, the historical online cookie-based methods will not function in the walled garden of an app. This has led to the creation of mobile data management platforms and mobile app customer relationship manager companies. As consumer engagement with brand apps rise, advertisers will be able to attain a deeper understanding of the consumers’ behaviour, subsequently communicating with them in a more impactful manner. Combining all touch points of a customer’s journey will ultimately become the new ‘best practice’ for advertisers.

KEY TAKEAWAYS FOR 2016

As we entered the last part of 2015, the industry was introduced to a new acronym, MAD TECH, the combination Marketing Technologies and AD Tech. MAD TECH will be the buzzword for 2016, as the industry is already seeing traditionally non-media players like Oracle, Adobe and IBM developing their own marketing cloud solutions in partnership with mobile and online ad tech platforms.

As brands begin to harness their app data, partnering with ad tech solution providers that can help extend the lifetime value of their app and maintain brand relevancy in the rapidly evolving app economy will be the key to success. Data management, tech enabled creative, programmatic media buying of brand safe inventory and analytics will be the pillars of these partnerships. The resulting increased customer retention and clear return on mobile ad spend will show that in-app advertising has cemented its place as the cornerstone of digital advertising.


Naveed Ahmad is CEO at Addictive Mobility