While Facebook and Google fight each other to see who will reign supreme in mobile advertising, every other company seems to not even be trying in the ad space.
Mobile advertising is the fastest growing digital advertising format in the US, but there seems to be a hesitancy with businesses investing in it. Some marketing agencies are trying to get ahead of the curve by investing advertising dollars in apps, but some companies that dominate the mobile space like Twitter and Alibaba don’t take that as a sign that companies want to advertise on its mobile platform. Google and Facebook are betting that is what companies want, and the bet has paid off big time.
Together, the two companies own about half of the mobile ad revenue in the entire world, and that revenue keeps growing in the billions. The weird thing though is that Google and Facebook’s investment in advertising on mobile devices doesn’t seem like that big of a gamble to begin with. Twitter’s small investment in mobile advertising seems like a much bigger gamble.
Think about it: You can’t walk down the street without seeing at least a couple of people on their phones checking their social media, reading the news or playing “Pokemon Go.”
Google and Facebook have an excess of information on pretty much everyone — from your favorite type of music to what you’ve been shopping for online. Those analytics help marketing agencies understand what type of ads to place on your phone, which is invaluable information for them.
The biggest caveat to mobile advertising is the increase of actual purchases made on your phone isn’t increasing. Entering in your credit card number or buying plane tickets is just way easier to do on a laptop than a phone still.
But there’s hope that the problem will still be fixed. According to BI intelligence, Marketing agencies and companies alike are expecting to spend nearly $42 billion on mobile advertising.