Is The Mobile Ad Market Poised To Break Out... Or To Disappear?
from the are-mobile-ads-necessary? dept
Matt Marshall over at VentureBeat has an excellent article on AdMob, a top company in the mobile advertising space. Marshall does some back-of-the-envelope calculations to come up with some revenue figures and notes that AdMob is poised to start "minting" money as the mobile web takes off. It may happen, but I wonder if the mobile ad market will really be as big a deal as some make it out to be -- for a few reasons. First, it seems incredibly unlikely that mobile ads get anywhere near the clickthrough rate of web-based ads. Given the scenarios under which mobile content is usually called up (on the go, looking for something specific), it seems likely that mobile ads would get significantly less attention. Second, and more importantly, the concept of "the mobile web" still seems like a temporary invention that is destined to go away. As the iPhone has shown, it is possible to design a rather competent browser that can show "the full web" on a mobile phone. With mobile network speeds increasing, and more handsets bound to offer similar browsing functionality in the not-too-distant future, the distinction between the mobile web and the regular web seem destined to go away. At that point, specifically mobile ads will make even less sense, and the market will simply return to the existing market for web ads.
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Mobile Ads 2.0
(Although billboards sometimes do prompt an immediate action, such as getting off at the next exit to go visit the world's largest ball of string.)
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Take RIM's mobile browser, please. It sucks, period! The idea that the web will continue to create two views of content, Mobile vs Standard, over the long term is absurd. The iPhone is the thin edge of the wedge that is breaking out full internet access on a mobile device as standard functionality. I can't wait to see what the competition does in response.
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Not what we've seen
The current line of thought is that this is because mobile ads are still new and somewhat of a novelty and that, in time, metrics will fall in line with where the web is now.
As to the "mobile web" vs. the standard web on a phone such as an iPhone, there will probably be a place for both. A mobile phone screen is not, and will never be, like a monitor. It is much smaller. Likewise for a mobile phone keyboard or pointing device.
Therefore, for some applications and content, there will be a need for content specifically designed with a mobile device in mind.
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Re: Now what we've seen
I agree, but I think a lot of clicks can be chalked up as purely accidental. The less intuitive user interface and methods for navigation on a phone can lead to a lot of miss-clicks.
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Embedded
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mobile web
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Re: Not what we've seen
That's surprising. On Techdirt, we serve up separate ads on the mobile version, and I can say that while we get decent mobile traffic, the ads get almost *no* clicks. Well below our web average.
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mobile CPM
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The user experience for a mobile device will be different from the user experience for a desktop device if those experiences are optimized. I suspect that there will be more ways to optimize the user experience for interactive advertising on mobile devices than on desktop devices. After all, we take our mobile devices with us when we go shopping.
Content will also be optimized. I can see cheap reusable devices underwritten by sponsorships and location based subsidies. Free WiFi will expand. Android is free. Mobile hardware evolution will eventually slow down to a snail's pace and most mobile hardware will become commodities.
What is standing in the way of this?
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Re: Re: Not what we've seen
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Mobile advertising viability
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