Mobile Advertising Strategies and Best Practices

Mobile advertising is a rapidly growing industry, with mobile ad spending projected to reach $275 billion by 2023. This is a significant increase from the $176 billion spent in 2020.

To succeed in mobile advertising, it's essential to understand the different types of mobile ads. According to our research, there are several types, including display ads, video ads, and native ads.

One effective mobile advertising strategy is to use location-based targeting. This involves using a user's location to deliver ads that are relevant to their surroundings. For example, a user searching for a coffee shop on their phone is more likely to engage with an ad for a nearby coffee shop.

By understanding the different types of mobile ads and using targeted strategies like location-based targeting, advertisers can increase their chances of success in the mobile advertising space.

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Mobile advertising is any form of digital advertising specifically designed to appear on a mobile device, usually a smartphone or tablet.

Mobile advertising is a key part of a complete mobile marketing strategy, which can use other channels like social media ads, paid search ads, and more.

Mobile ads aim to drive a direct response from the viewer through a call to action, which can be purchasing a product, or other goals like promoting a webinar or event, growing an email list, or simply spreading awareness.

Mobile ads can be useful for a variety of goals, including promoting a webinar or event, growing an email list, or simply spreading awareness.

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Mobile advertising can take many forms, but some of the most common types include push notifications, image text and banner ads, click-to-download ads, and click-to-call ads.

Push notifications can be delivered to consumers at any time, even when they're not using an app. Image text and banner ads, on the other hand, redirect users to the advertiser's page in a browser when clicked.

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Here are some of the most common types of mobile ads:

Mobile advertising comes in many forms, each with its own unique characteristics.

Push notifications can be delivered to consumers at any time, even when they're not using an app. This makes them a great way to reach users who might not be actively engaged with your brand.

Click-to-download ads direct users to the App Store or Google Play, making it easy for them to download your app. Click-to-call ads allow users to call you directly from your ad, while click-to-message ads enable users to send you a message via SMS.

Image text and banner ads are traditional formats that work well on mobile devices, and they're often used in conjunction with other ad formats. Pin pull ads, on the other hand, are less common, but can be effective in certain contexts.

Here are some common types of mobile ads:

A good mobile ad should have a clear, easy-to-understand message with a hard-to-resist call to action. This will help grab the user's attention and encourage them to take action.

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Video ads are especially valuable for mobile advertising since most users prefer to watch videos on their smartphones. They can appear on social media, within other apps, or as interstitial ads.

The best video ads are usually catchy and short since the main goal is to grab and maintain user attention. This is why Nissan's 60-second video ad was so effective, with a surprising 93 percent engagement rate and a 78 percent completion rate.

You can also use video ads to provide additional information to users, such as Nissan did by allowing users to touch the screen on five specific points to get more details about the car and its features. This interactive element can make video ads even more engaging and memorable.

Video ads can be placed in various locations, including social media, other apps, or as interstitial ads. They're a great way to capture user attention and convey your message in a visually appealing way.

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Mobile ad models have evolved significantly over the years, with the earliest form of mobile advertising appearing as SMS text messages. Mobile ad campaigns quickly evolved into mobile web and in-app advertisements.

Cost-per-install mobile advertising networks work as either incentive or non-incentive models. In the incent model, users are given virtual points or rewards to install a game or other app. Many apps offer a free version that can be downloaded at no cost, but which is paid for by placement of advertisements within the app.

Mobile versions of websites also have advertisements that are optimized for mobile displays—smaller than they would appear on the full version of the same website. This is a key consideration for advertisers looking to reach mobile users effectively.

Here are some common mobile ad bidding options:

Native ads are a great way to advertise on mobile apps, and they're often less intrusive than other types of ads.

Native ad formats blend in with the app's design, making them look natural and not as direct or loud as other ads.

They're convenient for advertisers and users alike, as they're less likely to irritate users.

Native ads are treated as sponsored content, which is a big part of their appeal.

This approach helps users feel more comfortable with the ads, and they're less likely to feel annoyed or frustrated.

Native ads are a great option for mobile apps, and they can be a win-win for both advertisers and users.

Gamified ads are a very promising format that works remarkably well if your goal is to get more engagement.

Playable ads, a type of gamified ad, are the most interactive ads and naturally spark more interest compared to other formats.

A good example of a gamified ad is an ad showcasing mobile apps that lets the user test the new game before deciding to purchase, which can be a great way to increase engagement and drive sales.

These types of ads can be especially effective for mobile apps, as they allow users to experience the app firsthand before committing to a purchase.

Mobile advertising has evolved over time, and we see two main models in action: cost-per-install and mobile web ads.

The cost-per-install model is a popular choice, where payment is based on the user installing an app on their mobile device.

This model comes in two flavors: incent and non-incent.

In the incent model, users are given virtual points or rewards to install a game or other app, making it a win-win for both parties.

In the non-incent model, there's no reward involved, and the ad generates interest in the potential customer on its own merit.

Mobile websites also have advertisements optimized for mobile displays, which are smaller than their full website counterparts.

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Mobile ad bidding options can be overwhelming, but let's break them down.

CPC, or Cost Per Click, is a common bidding option where you pay each time a user clicks on your ad.

PPC, or Pay Per Click, is another name for CPC, so don't worry if you see these terms used interchangeably.

CPM, or Cost Per Mille, refers to the cost of showing an ad to 1,000 users.

CPI, or Cost Per Install, is a bidding option where you pay each time a user installs your app after clicking on your ad.

CPA, or Cost Per Action, is a bidding option where you pay each time a user takes a specific action, such as filling out a form.

CPL, or Cost Per Lead, is similar to CPA, but with a focus on generating leads rather than any specific action.

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PPC (pay-per-click) is a performance-based pricing model where payments are calculated based on the number of clicks on an ad.

This model is great for budget control and targeted traffic delivery, but can sometimes become expensive, especially when it comes to search advertising and popular keywords.

The overall cost of launching a PPC campaign is smaller compared to traditional radio or TV ads, but it can still be pricey if not managed well.

PPC is often used in conjunction with other mobile ad models to achieve a better return on investment.

Mobile advertising is often regarded as the most budget-friendly option for advertisers, and PPC can be a cost-effective way to reach your target audience.

The simplicity of PPC makes it a popular metric, but it's essential to track and optimize your budget to get the most out of your campaign.

Cost Per Lead (CPL) is a pricing model where advertisers pay for each lead generated by their mobile ad campaign. This model is a variation of CPA, but it doesn't give you any information regarding the customer journey and the touchpoints that led users into conversion.

Mobile advertising is often regarded as the most budget-friendly option for advertisers, but with CPL, you'll need to consider the cost of each lead to ensure it's within your budget. The overall cost of launching a mobile advertising campaign is far smaller than traditional radio or TV ads.

A good mobile ad campaign should be designed with the target audience in mind, and with CPL, you'll need to carefully consider the type of leads you're generating to ensure they're high-quality and relevant to your business.

Rich Media can be a powerful tool for mobile ads, but there are some limitations to keep in mind. Mobile rich media ads can incorporate videos or eye-catching visuals, making them more engaging for users.

You may have seen these types of ads on Facebook in between posts from friends and companies you follow, or on YouTube as you stream content. These ads can be a great way to capture users' attention and encourage them to take action.

One of the challenges of mobile rich media is that all of the coding must be done in HTML5, since iOS does not support Flash. This can limit the types of interactive features you can include in your ads.

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Mobile advertising is proving to be very effective, in large part because it connects with users as they are actively using their devices for increasingly long periods of time.

Mobile ads that have a clear, easy to apprehend message with a hard-to-resist call to action, designed with the target audience firmly in mind, and that effectively optimizes the small amount of space available are the foundation of a good mobile ad.

To measure the effectiveness of mobile ads, you can use metrics such as Click-Through Rate (CTR), Cost Per Click (CPC), Cost Per Lead (CPL), and Effective Cost Per Mille (eCPM). These metrics can help provide some idea of how well your customers are responding to your ads.

Here are the key metrics to track:

By tracking these metrics, you can continually refine and optimize your mobile ad campaigns to improve their effectiveness and achieve better ROI.

A good ad is all about delivering a clear and compelling message that resonates with your target audience. It's essential to design your ad with the user in mind, taking into account the limited space available on a mobile screen.

To measure the effectiveness of your mobile ad, you'll want to track metrics like Click-Through Rate (CTR), which indicates the percentage of people who click on your ad compared to those who see it. A higher CTR suggests your ads are reaching the right audience.

The Cost Per Click (CPC) is another crucial metric, measuring how much it costs to earn one click on your ad. It's essential to factor in all costs associated with placing the ad, including strategy, design, and layout fees, to get an accurate picture.

A good ad should also aim to generate quality leads for your sales team, making Cost Per Lead (CPL) a vital metric to track. Comparing CPL to CPC can help identify potential customer journey issues.

Effective Cost Per Mille (eCPM) is a useful metric for measuring the effectiveness of your ad, calculated by dividing revenue generated by the total number of impressions served. A higher eCPM indicates a more effective ad, but if it's lower than your CPM, it may be time to rethink your strategy.

Interactive ads, such as rich media and rewarded video ad formats, can be highly engaging and effective, allowing users to explore products from different perspectives before making a purchase.

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Mobile advertising is proving to be very effective, in large part because it connects with users as they are actively using their devices for increasingly long periods of time.

Since 2017, web traffic has been dominated by mobile devices, with 54.67% of all web traffic coming from mobile devices in 2023. This shift has made mobile advertising a crucial channel for businesses to reach their target audience.

Mobile advertising allows you to segment your market and create targeted advertisements shown only to specific demographics. This customization can increase engagement and conversion rates by speaking directly to each customer's needs.

Mobile marketing is significantly cheaper than traditional marketing techniques, with a better ROI. This is because targeted mobile advertisements take a sniper approach, reducing wasted spend and increasing engagement.

Here are four basic metrics to measure your mobile ad spend performance:

These metrics help provide some idea of how well your customers are responding to your ads, but they fail to paint the whole picture.

Mobile ad targeting is a powerful way to reach your desired audience with precision. Advertisers can leverage a wide range of data to set up detailed and precise targeting, so only those who correspond to their requirements can view their ad campaigns.

With location-based advertising, you can target users based on their location, such as by latitude and longitude, allowing for precisely targeted advertising. For example, a store can target users who are geographically close to their location.

Mobile devices can be targeted by device type, carrier, connection type, operating system, and more. This means you can target users based on the specific device they are using. In addition, device IDs, such as IDFA (iOS), AAID (Android), and Windows Advertising ID (Windows), allow for targeting on mobile devices.

However, targeting mobile devices comes with some challenges. Users cannot be reliably identified across multiple devices, which affects targeting and frequency capping. This means that if a user sees an ad on their Android phone and hits the frequency cap, they may see the same ad again on their iPad.

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Despite these challenges, mobile ad targeting offers many benefits. You can now target users of almost any age or gender, socio-economic background, or ethnicity, even with different interests and habits. This means you can create highly targeted and relevant ad campaigns.

Personalization is also a key benefit of mobile ad targeting. With global reach and instant delivery, you can create personalized campaigns that are remarkably efficient. For example, a UK-based insurance company, Hiscox, ran a successful campaign that targeted residents of Covent Garden in London, resulting in 5 times higher click-through rates compared to their regular display ads campaigns.

Here are some common ways to target mobile devices:

These targeting options can help you create highly targeted and effective ad campaigns that reach your desired audience.

Mobile targeting is a real challenge. Users can't be reliably identified across multiple devices, making it difficult to target and cap ad frequencies.

This affects how ads are delivered. If you see an ad multiple times on your Android phone and hit the frequency cap, you shouldn't see it again. But if you switch to your iPad later, you may see the same ad again because you're not identified as the same user.

Frequency capping on mobile devices works on a per-device basis. This means if you switch devices, your frequency cap is reset.

A good mobile ad needs to be clear and easy to understand, with a hard-to-resist call to action.

To achieve this, you need to design your ad with your target audience firmly in mind.

Mobile ads are a key part of Agility's strategy, but they can be tricky to measure.

Using advanced data science, machine learning, and analytics, Agility can measure the direct response of their precision brand advertising strategy to your business.

A curated mix of mobile ads, geofencing, connected TV ads, display ads, and audio ads can help you reach your target customers wherever they are.

Contacting Agility today can help you learn more about how to take advantage of mobile advertising.

Mobile ads can appear in various forms, such as on Facebook between posts from friends and companies, or on YouTube as video ads that appear periodically while streaming content.

Nissan's interactive video ad is a great example of a successful mobile ad. The ad featured a 60-second video with a dynamic and engaging storyline, where users could touch the screen to get additional information about the car and its features.

This interactive approach resulted in a 93 percent engagement rate and a 78 percent completion rate, demonstrating the power of mobile ads in capturing users' attention.

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Mobile ads can be eye-catching and interactive, like the ones you see on Facebook, which can incorporate videos, visuals, and ad copy.

These ads often have a call-to-action, such as "learn more" or "buy now", and can be a great way to engage with customers.

Nissan's mobile ad campaign featured a 60-second video with a dynamic and engaging storyline, including an evil snowman attacking a Nissan SUV.

The campaign also included interactive elements, allowing users to touch the screen to get additional information about the car and its features.

This campaign resulted in a surprising 93 percent engagement rate and a 78 percent completion rate, demonstrating the power of mobile ads.

The Domino's Pizza app is another great example of mobile ads gamification, allowing users to design and order their own pizza.

This interactive approach removed friction from the purchase process and increased user engagement, resulting in 3 times more users visiting the app and a 63% sales increase.

By incorporating interactive elements and engaging storytelling, mobile ads can be a powerful tool for reaching business goals in various industries.

Let's take a look at four successful mobile advertising examples that can inspire your next campaign.

Coca-Cola's "Share a Coke" campaign is a great example of a successful mobile ad. They created a mobile app that allowed users to scan a can or bottle and share a personalized message on social media.

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The campaign saw a significant increase in engagement and sales.

Nike's "Find Your Greatness" campaign used mobile ads to promote their new line of running shoes. The ads were targeted to runners and fitness enthusiasts, and were highly effective in driving sales and brand awareness.

The campaign's success can be attributed to its emotional appeal and use of mobile-specific features like location-based targeting.

Starbucks' mobile ordering feature is a great example of a successful mobile ad that drives real-world sales. By allowing customers to order and pay for their drinks through the app, Starbucks has seen a significant increase in sales and customer loyalty.

The feature has also streamlined the ordering process, making it easier for customers to get their favorite drinks on the go.

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Nissan was a pioneer in mobile advertising, launching a campaign that showcased the power of interactive videos.

Their 60-second video featured a Nissan SUV being attacked by an evil snowman, making it dynamic and engaging.

The video allowed users to touch the screen on five specific points to get additional information about the car and its features.

The brand highlighted the drivers' struggles with winter weather and snow safety, resonating with users.

This campaign resulted in a surprising 93 percent engagement rate and a 78 percent completion rate, demonstrating the effectiveness of interactive mobile ads.

Video ads are especially valuable in mobile advertising, as most users prefer to watch videos on their smartphones.

Mobile advertising and mobile marketing may seem like interchangeable terms, but they have distinct differences. Mobile marketing is a broader term that encompasses mobile advertising and other forms of marketing communications.

Mobile advertising uses personal data to target users, but mobile marketing takes it a step further by leveraging technology like location services to personalize ads based on user preference, habits, or location. This means mobile marketing can appear when a user is near a specific store or service provider, making it a more targeted approach.

Mobile advertising and mobile marketing may seem like the same thing, but they're actually quite different. Mobile marketing is a broader term that includes mobile advertising and other forms of marketing communications.

Mobile advertising uses personal data to target users, but mobile marketing takes it a step further by using technology like location services to personalize ads based on user preference, habits, or location.

Mobile marketing can be so precise that it only appears when a user is closely linked to a specific store or service provider.

Mobile advertising is a unique beast, and understanding its differences from desktop advertising is crucial for success.

Mobile advertising is mostly based on mobile apps, which are often downloaded for free or use the freemium business model, leaving space for marketers to get creative.

Ad blockers are not as widely used on mobile devices, which means potential losses from ad blockers are significantly lower compared to desktop.

User intention is also different between mobile and desktop environments. For example, 56% of mobile users search for products.

Mobile users are also more likely to compare prices, with 52% doing so weekly, compared to 34% of desktop users who perform this action.

Mobile ad campaigns can be a powerful tool in your advertising strategy, but without proper targeting and planning, they can unnecessarily cost you money.

Targeting your ideal customer involves identifying key demographics, user behavior, historical purchases, and geographical location. Without accurate targeting, you'll be spending money serving ads to consumers who are unlikely to care or take action.

Creating relevant ads that resonate with your customers is equally important. Poor resolution, unclear CTAs, and unappealing design will quickly lose customers' attention.

A positive advertising experience is just as important as making a positive user experience in your product or store.

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