Apple’s launch of its App Tracking Transparency (ATT) framework has sent shockwaves throughout the mobile advertising industry. By making IDFAs (Apple’s device-level Identifier for Advertisers) available to advertisers and ad tech only on an opt-in basis, in-app advertising is not as targeted as it once was.
In addition, Google made two major decisions around identity and privacy last year. For one, Google began enabling Android users to opt out of device-level tracking last year. In addition, Google announced that it would officially phase out support for third-party cookies in Chrome by 2023.
As all this shows, the future of mobile advertising is increasingly privacy first. Even in this current privacy-first landscape, here’s why advertisers should still invest in mobile, along with how they can still ensure success.
Want to reach your best audience segments at scale going forward? Mobile has to be a key part of your media mix.
In the U.S., consumers are expected to spend close to 4.5 hours a day on mobile in 2022, according to eMarketer’s estimates, with China expected to reach this level of mobile consumption by 2023. In Canada and in the U.K., over a third of all time spent with media is devoted to mobile.
And much of this time spent in mobile is devoted to apps. Apps will account for over 82% of time on smartphones in the U.S. in 2023, eMarketer forecasts. And, Americans check their phones over 260 times per day on average, which means that most people in the U.S. look at their phones around once every five minutes.
It’s also worth noting that most of us use a wide variety of apps in a given day or month. According to Sensor Tower, Americans use over 45 different apps a month. Not only are most of these apps free to download, but many monetize through advertising.
Leading the charge here is mobile gaming. According to Sensor Tower, a full third of all apps owned by U.S. smartphone owners are games. And time spent playing mobile games is expected to rise by 17% between 2019 and 2023, eMarketer predicts.
Not only is mobile where most of us spend our time, but it also offers several uniquely engaging ad formats not available in other media channels. Mobile is an inherently interactive media source, and the best ads take advantage of this functionality. Here are just a few examples of mobile-first creative options:
Ads that include/feature augmented reality (AR) – example
In addition to all of these interactive ad formats, many of the more standard mobile ad formats are proven to be highly effective. For example, InMobi’s own data has found that, compared to the average click-through rate (CTR) for banner ads, vertical videos perform 11x better. Further, compared to static banners, native ads have a 4x better engagement rate.
Brands can see huge value in banner ads on mobile too, especially when it incorporates rich media functionality. Not only are banners more cost effective than other formats, they are also ideal for reaching audiences at scale.
One of the hallmarks of digital advertising over traditional media is how measurable it all is. While many current measurement models in mobile advertising rely on device IDs, the deprecation of IDFA and GAID (Google Advertising ID, which is the Android equivalent of IDFA) doesn’t mean that measurability is non-existent on mobile now.
For one, many of the top-of-the-funnel metrics that advertisers have long relied on are still very much available. Think of viewability rate, CTR, video completion rate (VCR), invalid traffic rate, etc.
Outside of the raw scale numbers like impressions, these kinds of key performance indicators are highly valuable. Viewability rates can tell an advertiser if their ad is being seen by the end user, while VCR can provide insights into whether the video ad is resonating with audiences. CTR is especially helpful, providing key insights into whether consumers are taking advantage of the ad’s call to action and actually driving results.
In a post-IDFA, privacy-first world, targeted advertising to individuals is severely curtailed. But it is worthwhile to note that addressability as a whole is not going away. Rather, achieving addressability with in-app advertising going forward will just have to evolve.
Here are the solutions and options to consider solving for addressability in 2022 and beyond:
While ATT and the overall push towards a more privacy-first mobile advertising ecosystem are leading to a realignment of the old status quo, in-app advertising is far from over. Indeed, with the right mindset, technology and benchmarks, it’s perhaps even more valuable than ever before.
Interested in learning more about the future of mobile advertising and what’s needed to be successful in 2022 and beyond? Reach out today to chat with the mobile experts at InMobi.
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