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The Seven Myths Of Mobile Advertising
by Krish Arvapally, Friday, July 10, 2009, 5:00 AM

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With a clearer distinction between what's realistic today and what's been mystified by industry hype, brands, agencies and publishers alike can start leveraging the mobile medium now as an easy-to-use, creative, targeted, and measurable new revenue opportunity.

The myths that surround mobile are holding back many brand marketers and publishers from leveraging it for a competitive advantage, despite the fact that mobile is gaining more buzz every day. The industry needs a clearer picture of what's possible and how to put dynamic mobile marketing solutions to work today. Here are some of the myths we hear time and time again, as well as insight to help set the record straight.

Myth # 1: Smaller screen, smaller effect. Many marketers assume that because mobile phones have a smaller screen, advertisements will look more cluttered, and be less effective. In fact, CTRs have been found to be higher on small mobile screens than traditional PCs, and ads on mobile devices often look cleaner than on the Web. Content clarity overall is more vivid.

Myth #2: Low CPMs. Publishers often assume lower CPMs on mobile versus the traditional Web, and in turn, lower revenue opportunities. The reality is, CPMs can go up to $15-$20 for premium mobile Web sites, and as the mobile advertising industry grows, so will these rates.

Myth #3: Mobile ads are harder to design. I have found that a large percentage of advertisers believe it's harder to create campaigns for the mobile medium. However, the only real difference is that banner sizes are smaller. Any good designer can build them, and the Mobile Marketing Association offers standards http://www.mmaglobal.com/mobileadvertising.pdf to help guide you through it.

Myth #4: No unique user detection and targeting. On the Web, cookies enable advertisers and search engines to track unique visitors and who clicks on what link. It's just as simple on in mobile. By using multiple identity parameters in the ad requests, like the device, WAP IP, or session info, it's easy to detect unique users on mobile. And with that ability, concepts like frequency capping, demographic targeting and enhanced user targeting options prove mobile advertising a useful new marketing tool.

Myth #5: Creating a mobile Web site is difficult and expensive. Building a mobile content page is the first necessary step before launching a mobile ad campaign, and there are many free tools available to make it easy and painless. Mofuse, DotMobi and Ubik, for example, can help you build a mobile site, or simply translate your regular Web content into a mobile format. Then you can set it up to automatically extract your online content through RSS and feed it into your mobile site. Don't get overwhelmed -- if you have content already on the Internet, this can be done very quickly. The more automated, the easier it will be for you.

Myth #6: A perceived lack of ROI. The nature of mobile advertising allows you to capture conversions in a much more innovative way than the Web. The power of click2call actions, lead generation forms, and click2pay make it simple for advertisers to run mobile campaigns, determine effective conversions, and calculate ROI for their spend much faster and easier.

Myth #7: SMS is the only type of mobile advertising. Many assume mobile advertising is just SMS, which lacks user interaction and dynamic content, and offers limited ad text. Advances in mobile technologies have made it possible to expand advertising into interactive text and banners, and embed ads in mobile games and smartphone applications. The enhanced support for rich media on the iPhone, Android, Nokia and other smartphones has made it possible for advertising to take a step forward and offer more streamlined brand exposure.

With a clearer distinction between what's realistic today and what's been mystified by industry hype, brands, agencies and publishers alike can start leveraging the mobile medium now as an easy-to-use, creative, targeted, and measurable new revenue opportunity.

Editor's note: If you'd like to contribute to this newsletter, see our editorial guidelines first and then contact Nina Lentini.

8 people recommend this article. 

3 comments on "The Seven Myths Of Mobile Advertising "

  1. Randy Haldeman from Apptera
    commented on: July 10, 2009 at 6:17 PM
    Krish,

    Insightful. Thanks for promoting the strong viability (and superiority) of mobile advertising. When busting Myth #7 [SMS is the only type of Mobile Advertising) don't forget to add voice advertising to the mix.

    We are inserting millions of relevant audio ads each month into informational phone calls along with associated SMS and MMS follow-up information. We're getting 2 to 8% CTR's and providing great ROI's for our clients.

    A recent example was inserting geo-targeted ads for nearby Chevys restaurants to mobile callers of AOL's Moviefone service. The ad said "If your're hungry before or after your movie, stop by Chevy's which is just 2 blocks north of your theater. Press 1 now for a promotion code for $10 off a meal tonight."

    We served tens-of-thousands of ads and delivered thousands of codes. Like you said "brands, agencies and publishers alike can start leveraging the mobile medium now as an easy-to-use, creative, targeted, and measurable new revenue opportunity."

    BTW, the margaritas are on me...

  2. Krish Arvapally from Mojiva, Inc.
    commented on: July 10, 2009 at 3:58 PM
    Thanks Tamara for the input! I agree with your points. Especially, as you noted, using existing IAB 300x250 banners into full-screen home page screen takeovers for Mobile makes it even easier/faster to get started with advertising on mobile. And yes CTRs are even higher for user-engaging rich media ads. - Krish Arvapally, http://blog.mojiva.com.

  3. Tamara Gruber from Crisp Wireless
    commented on: July 10, 2009 at 11:50 AM
    Krish, great article and these are myths that need to be dispelled. I'd like to add that in terms of #1, mobile advertising generates higher CTRs than online, especially when it comes to rich media. Some ad units are generated double-digit CTRs. These leads into #2: rich media ad units provide greater opportunities for consumer engagement, adding value and therefore garnering a higher CPM. For #3, while creating ad units for mobile doesn't have to be difficult, it is also possible to extend IAB standard 300x250 ads as a full-screen home page takeover ad on smartphones. You don't have to touch existing creative and you make a powerful impression on your audience.

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KRISH ARVAPALLY
  • Krish Arvapally is the Founder and CTO of Mojiva, a mobile advertising firm based in New York. Prior to Mojiva, Krish spent years establishing his own software firm, and developed a fascination with creating seamless technology that: improves client-server apps; streamlines product management; simplifies business analysis; rides the next wave of online marketing techniques. Reach him here.


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