What is 'Mobile Advertising'

Mobile advertising is type of advertising that appears on mobile devices such as smart phones and tablets that have wireless connections. As a subset of mobile marketing, mobile 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 outnumber 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.

Mobile Advertising History

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 Adverting Platforms

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. Mobile ad placement works by way of a programmatic bidding process for ad placement, in which advertisers bid in real time for the right to place an ad on a mobile device. The infrastructure that allows for this process is known as a demand-side platform (DSP). Use of such platforms allows advertisers to optimize their performance as based on a number of key performance indicators (KPI), such as effective cost per click (eCPC) and effective cost per action (eCPA).

RELATED TERMS
  1. Mobile Marketing

    Mobile marketing utilizes multiple distribution channels to promote ...
  2. Mobile Commerce

    Mobile commerce is the use of wireless handheld devices, such ...
  3. Advertised Price

    An advertised price is the price of a product or service as displayed ...
  4. Advertising Elasticity of Demand ...

    Advertising elasticity of demand (AED) is a measure of a market's ...
  5. Banner Advertising

    Banner advertising refers to the use of a rectangular graphic ...
  6. Mobile Trading

    Mobile trading refers to the use of wireless technology in securities ...
Related Articles
  1. Small Business

    How is Programmatic Advertising Changing Media?

    Understand what programmatic advertising is as well as the technology that drives it. Learn about the top four ways programmatic advertising is changing media.
  2. Small Business

    Where Are Advertisers Spending Their Money?

    We list five outlets where advertisers are spending their money, and how these trends developed.
  3. Tech

    China Mobile: Just How Big is It? (CHL, CHU, CHA)

    The story behind China Mobile, the biggest company you might never have heard of.
  4. Investing

    Facebook's Milestone: 5M Monthly Advertisers

    Five million advertisers are running ads on the social network, up from 4 million in September.
  5. Personal Finance

    Top 5 Biggest Mobile E-retailers

    Online shopping has never been easier, thanks to the proliferation of mobile shopping apps.
  6. Tech

    The Future Of Mobile Banking (JPM, BAC)

    Typically slow to react to technological change, retail banks are finally recognizing the benefits it provides to consumers as well as the cost savings it gives the firm.
  7. Personal Finance

    Mobile Apps That Help You Earn Money

    With the mobile app industry set to continue its growth, we address apps that deliver money-making opportunities to users.
  8. Investing

    How Google & Twitter Compete with Facebook's Instant Articles (FB, GOOG)

    Look at how Facebook's Instant Articles feature works, and how it differs from the new Accelerated Mobile Pages feature from Google and Twitter.
  9. Tech

    Blockchain Unlocking Advertisers’ Profit Potential

    In online advertising’s current paradigm, there is an unavoidable conflict of interest. Enter blockchain.
  10. Investing

    China Mobile Stock To Trade Ex-Dividend Tuesday (CHL)

    China Mobile will send its dividend payment on July 5 to shareholders of record as of June 5.
RELATED FAQS
  1. How important is advertising revenue in the Internet sector?

    Learn about the importance of advertising revenue in the Internet industry. Find out how much Internet firms rely on advertising ... Read Answer >>
  2. How does Facebook make money?

    Facebook has gone from losses to a money spinner in a short span of time. Where do its profits come from? Read Answer >>
  3. What is the "bait & switch" technique?

    The bait and switch is a advertising technique which can be considered illegal, but in most cases is merely looked upon as ... Read Answer >>
  4. How does revenue sharing work in practice?

    Find out how revenue sharing works as profits are distributed among associated business partners. Learn how revenue sharing ... Read Answer >>
  5. What is the telecommunications sector?

    The telecommunications sector is comprised of companies that transmit data in words, voice, audio or video across the globe. Read Answer >>
Trading Center