Mobile Advertising

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).