Reading a recent piece on Business Insider (“The Mobile Advertising Ecosystem Is Fractured, Complex, and Hugely Important”), I was struck by the article’s very first sentence: Consumers in the U.S. now spend the majority of their Internet time on mobile.
This has serious implications for digital advertising, which is the focus of the report (subscription required) linked to from the article. Currently on mobile, CPMs are low, ads are often intrusive, and the landscape is seriously fractured by OS, wireless carrier, device, and more. The report also details how mobile lacks the technical consensus to deliver ad targeting, delivery, and measurement in a seamless manner. All this contributes to the fact that although mobile Internet usage is skyrocketing, mobile ad spending hasn’t caught up. Advertising on mobile is hard.
As the rise of mobile lets people evade digital advertising, referral marketing grows in importance. Not only does it allow you to target consumers precisely, to a level that can be difficult to achieve using current mobile ad technology, multiple delivery options like email and social mean that a personalized recommendation for your brand or product will be injected directly into a user’s pocket, wherever he or she happens to be.