Mobile Advertising

DEFINITION of 'Mobile Advertising'

Mobile advertising is a method of advertising that appears on mobile devices such as smart phones, tablets or PDAs that have wireless connections. Advertising can take place as text ads via SMS, or banner advertisements that appear embedded in mobile web site, in downloaded apps or in mobile games. Mobile technology used by companies such as Google and Facebook tailor mobile advertisements based on individual's web browsing history, geographic location, and with data collected by shopping habits. Because mobile devices typically have smaller screens than computers or laptops, this form of digital advertising is usually optimized for small displays by being concise.

BREAKING DOWN 'Mobile Advertising'

As mobile devices out number television sets now by almost 3 to 1, the chances of a potential customer seeing a mobile ad are greater than that of most other forms of advertising today. One of the popular models in mobile advertising is known as Cost Per Install (CPI), where payment is based on the user installing an App on their mobile device. CPI Mobile Advertising Networks work either as incent or non-incent. In the incent model the user is given virtual points or rewards to install the game or App.

The earliest form of mobile advertising took place via SMS test messages, but has quickly evolved to mobile web and in-app advertisements. Many apps offer a free version that can be downloaded at no cost, but which is paid for by placement of advertisements within the app. Such advertisements can be removed by purchasing a full or premium version of the app. Mobile versions of websites also have advertisements which have been optimized for the smaller mobile displays than would appear on the full version of the same website.

Mobile advertising also works hand in hand with mobile marketing which uses personal data collected and technology such as location services to personalize ads based on user preference, habits, or location. Some mobile advertisements may appear only when a mobile user is in close proximity to a certain store or service provider.