Best practices, benefits and challenges

Zack Dugow is the Founder and CEO of Instigatora global leader in increasing publisher engagement.

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To succeed in advertising, you have to go where your customers are. In the United States, where 97% of the population owns a mobile device, mobile advertising allows advertisers to reach their customers everywhere, every minute of every day.

Nothing beats that exposure, which is why in-app advertising is driving a gold rush of mobile ad spend. But even in the real gold rushes of the 1800s, not all prospectors struck it rich. There’s an art and a science to success, even in favorable market conditions like today.

If you’re ready to strike gold in mobile advertising, keep concerns like data, privacy, and user experience in mind. It may seem daunting, but if you do, you’ll have a better chance of striking gold.

In-App Opportunities

Mobile ad spending is expected to surpass $200 billion this year, and it’s easy to see why. With demand-side platforms (DSPs), advertisers can perform real-time, location-based targeting, targeting individual consumers with sniper-like precision.

In direct comparison, in-app advertising often provides a better customer experience than mobile web ads because it is often less compressed, has a more native feel, and is more responsive to design. All of these can undoubtedly lead to better audience engagement.

In-app ads can also provide better targeting data, triggering relevant updates and ads when, for example, a user approaches a physical location of the companion app. The amount of first-party profile data collected in the app may be greater than the amount of data collected in mobile ads.

One of the biggest challenges facing the industry right now is that while in-app ads provide a superior user experience, mobile web ads are still easier to monetize. Innovation, careful monitoring of key performance indicators, and unique revenue models like subscriptions and gated content are all steps that can be taken to counter this. The rate of growth in this part of the market is incredibly high.

Optimization of ad formats and locations

There’s a fine line between love and hate, and an even finer line between ads that stand out and those that annoy everyone. Ads that are inconspicuous are obviously not effective, but ones that stand out too much can interrupt the flow of user engagement in a way that won’t help conversions. You may need to A/B test your ad copy to find the right balance.

Finding the right ad sizes and placements is also key. Banner ads are often placed at the very top of a page, which can be a prime space for user engagement through viewability. Mobile banner ads come in a variety of sizes, however, so it’s important to remember the pros and cons of each size and placement. While one ad size will be positioned at the top of a page, others may fit into the ad experience further down the page. Each has its purpose and can also reinforce each other. Experimentation is key to optimization.

Harnessing the power of first-party data

I’ve written before in this space about the value of a first-party data strategy in your approach to optimization. While it’s a moving target, the shift away from third-party data is going to happen eventually, and more jurisdictions around the world are adopting laws and guidelines to that effect. In the meantime, relying on first-party data gives you short-term flexibility and lays the foundation for longevity in the future.

In mobile targeting, you can use strategies like user registrations, subscriptions, and gamification to collect more of this valuable data. While it’s a slower process than a third-party, you can trust the data more because you collected it yourself. Plus, you can confidently implement optimizations that will drive more revenue on your end and a personalized experience on the user side.

Navigation in user consent

I also talked a lot about privacy. Indeed, privacy will increasingly become a cornerstone of our industry as consumers become more aware and concerned about how their data is collected, stored and used.

The introduction of App Tracking Transparency (ATT) prompts on iOS devices has helped simplify this process as we become more accustomed to asking users for consent and they become more comfortable granting it. We can help improve this relationship and process by working on compelling opt-in strategies and incentives to get users used to providing us with valuable first-party data. Similar strategies, along with proactive engagement with Google’s Privacy Sandbox, can help deliver targeted advertising in a post-cookie future.

Strategic partnerships and emerging trends

A key part of all this is choosing strong strategic partners for your advertising strategy. The right partner can help you access trusted ad networks, reduce ad fraud, and increase your revenue opportunities. They will also help you navigate the fluctuations and changes that hit our market at regular intervals. After all, a problem shared is a problem halved.

Some of these changes are already on the horizon. The increasing bandwidth capabilities of our mobile networks have expanded the boundaries of what’s possible with our ad content, enabling higher-quality video, more interactive content, and customizable incentives. The burgeoning AI sector may also provide growth opportunities, as personalized content, real-time ad creation, and responsive designs become more possible in even the most remote corners of the country.

Final Thoughts

People are constantly on the move, and mobile and in-app advertising technologies allow us to keep up with them. This type of accessibility and convenience will only grow in the years to come, and we need to stay on top of the changes.

By adopting industry best practices, staying ahead of trends, and always striving to meet the highest standards, we can give digital advertising the kind of leadership and future it deserves.

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