While consumers have become more and more accustomed to smart phones, the differing ways in which advertisers attempt to market to mobile users hasn’t evolved much since its early offerings. Mobile advertising contends to be the most lucrative and ubiquitous market in the near future – if it isn’t already. It is likely to be equal to the marketing explosion from online advertising a decade ago, but the ways in which advertisements are marketed to mobile users have remained mostly unchanged. It is increasingly important to find ways to direct a successful marketing to someone on their Apple (NASDAQ:AAPL) iPhone or Google (NASDAQ:GOOG) Android smartphone and it is likely to change in the near future.
Mobile advertising is multifaceted and complex. Mobile ad networks operate much the same way as online ad networks do — they get a large ad inventory, analyze potential, and sell it to advertised based on matching their needs. Networks differentiate themselves through value-added services or improved targeting. The largest ad networks have a large sales force which reaches out to advertisers along with their own campaign optimization technology.
Demand side platforms work similarly to ad networks by matching advertisers with inventory, but work specifically with brands. They work more or less independently of ad networks, but could feasibly compete with them once demand side platforms start hiring staff to sell ad inventory.
Mobile ad exchanges automate the mobile ad process, connecting publishers with multiple ad networks at the same time. Ad exchanges have little interaction with mobile ad agencies and brands giving agencies little reason to connect with them given that they would eat away at theur lucrative role as brand media buyers.
The biggest problem with mobile ad agencies and mobile marketing is that they have yet to find a way to connect to mobile users in a natural and obtrusive way. However, agencies are beginning to focus their energy on mobile marketing, finally seeing the potential for revenue which exists in it. Some companies are also coming out of the void left by ad agencies not evolving their business practices. These companies are connecting with advertisers through their publishers’ inventory, but believe that the traditional mobile advertising model simply doesn’t work. They want to find an approach to mobile marketing that feels more natural and can get through to mobile users without causing disdain for advertisements.