Research Shows Brands Using Mobile Ads to Boost Clickthroughs

If there is still doubt about the profitability of mobile devices, that should be erased with the report that brands are increasing their engagement via mobile ads. According to the latest report, the average CTR (click-through rate) for mobile campaigning has increased by threefold the past year, and much higher compared with the desktop.

Mobile Devices are Becoming More Important

The same report also shows that Internet users are three times likelier to click the website of a brand using their mobile device rather than their desktop or laptop. This really isn’t something new, as the use of tablets and smartphones have been increasing, although the threefold increase the past year has been the highest, particularly the click-through rate. It isn’t just the CTRs that have increased though, as the interaction has also doubled the same period.

What the data shows is that in more than 3,000 video campaigns, the average CTR for mobile devices is nearly three times higher compared to a desktop, which again shows the trend towards the use of mobile devices over desktop computers. In fact the CTR for mobile ads, particularly video, has grown by more than 266% in the past year, from 3.7% to 13.64% compared to the same period the previous year.

Other Facts and Figures

The mobile interaction rates also doubled from the previous year to 22.64%, an increase of 105%. The same report shows that the CTR for mobile has grown twice the pace of desktop computers, with the uplift around 163%. This doesn’t mean desktop CTRs are not growing, for they are too at 151.15% to 5.45%, but it is clear that mobile device is where the future is.

If you look at the figures for mobile devices on a monthly basis, the figures seem to fluctuate, and that is true. But the year to year data for 2013 shows that the stats for mobile is still 1 1/2 times higher compared to those for desktops and laptops.

Video Ad Use and CTR on the Rise

Video consumption by users on mobile is rising, and because of this it isn’t surprising that advertisers and brands are following suit. Although different mobile ads can and are being used, the Internet Advertising Revenue Report (IAB) showed that digital video revenue for mobile totaled $1.3 billion in the US, a jump of 24% from the previous year.

And this figure is for the US alone, so when you add the total for all over the world, the figure will be even larger. The total revenues for mobile ads have actually reached $3 billion for the first half of this year, an increase of 145%.

According to industry analysts, the widespread use of mobile devices is directly tied with the explosion of video usage, as more and more people are now using mobile devices to watch videos. In response to this growing trend, companies and brands are now focusing on social video campaigns aimed only for mobile. There are many reasons why CTRs are increasing using this method, beginning with the fact that the videos are in short form and designed expressly for mobile use. By taking this approach, brands are now in a position to increase engagement with their ads.

What these findings point to is the fact that mobile is the ideal place to post ads. Brands are well aware that ads, whether they are videos or banners, have to be easy to share and emotionally attach themselves to users, otherwise it will be all for naught. By creating ads that attract attention, users will be eager to talk about it with friends, spreading word about the brand far more effectively than any promotional tool.

What Products and Services Get the Most CTRs?

While brands and companies are increasingly targeting mobile devices and its rich market, some products and services are more successful than others when it comes to CTR and engagement rates. By far the most successful in terms of engaging consumers are automakers and consumer packaged goods (CPG), as their concentration is on engagement rather than conversion.

On the other hand, responses for travel need some working on due to the fact that cookie restrictions when it comes to ticket purchase tracking. Nevertheless, a study conducted involving more than 1,000 campaigns and 2 billion impressions show that engagement and CTR are on the increase.

There are different media types used in industry reports and studies, and among the most widely studied are expandable banners, polite banners and standard banners. The standard banner uses an image that will bring the user to a landing page, while polite banners load only after the publisher content has finished loading. The expandable banner on the other hand, expands when a user clicks it and includes interactions and several panels.

The same study also shows that expandable ads produce a 60% interaction rate. By comparison, pilot banners only have an interaction rate of 1.9%. Based on the latest figures, brand interaction rate is on the increase, with the interaction rate for CPG at 11.7% and for automakers 20.7%. The interaction rates for entertainment and electronics brands are also going up at 5% and 7.9% respectively.

What Makes for Successful Interaction?

The reason why automaker brands are successful is the way they package their ads, and that is by including video galleries and images of the vehicle they are promoting. In addition, click to call and mapping are also widely used. Aside from this, brands can also use and combine various kinds of media to increase interaction. Regardless of the method used, brand awareness is very important, and for CTRs to get any boost at all, the ads have to include images, videos and social media. The majority of CPGs also use coupons to attract users to click their ads.

When it comes to expandable ads, electronics and entertainment and automotive are also ahead of the rest. The latest reports also state that the CTR for mobile expandable ads are higher than polite banners, by a rate of .63% to .28%, while a standard banner has a 0.09% rate. When it comes to retailers, the generated CTR is .52%
What these figures show is that there is no stopping the spread of mobile device users across the US.

As of 2013, it has been estimated that 56% of Americans own a smartphone, and nearly 15% of American media consumption is for mobile. And as points out, more than 30% of companies are now planning to implement some sort of ad campaign for mobiles. Given all these figures, it should not be surprising that companies and brands are taking steps to ensure they don’t get left behind.

Bio: Douglas Ralston is a technology professional and entrepreneur who specializes in web technology and mobile apps. Ralston is also an expert in the study of the application marketplace where he keeps abreast of the latest developments.

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