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2018 Programmatic Predictions, Part 2: How Mobile Industry Will Shape Out


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Mobile apps have already changed the digital world we live in, and there’s still a lot more to look forward to this year as we continuously develop tools and strategies to make people’s lives more convenient. According to the latest research by eMarketer, in 2017 people spent 2.5 hours a day using their mobile devices, a jump of 10.3% over 2016. But have we been taking advantage of this rapid growth of the mobile ecosystem? Let’s look at some forecasts for 2018 which will take us closer to leveraging the industry’s full potential.

  • Mobile ad spend will grow

There will be continuous increase in mobile ad spending. Magna Global states mobile ad sales increased 39% in 2017. With an expected additional 27% jump in 2018, mobile ad spend will reach 62% of all digital ad sales. That’s $147 billion in spend. Impressive, right?

  • RTB standards will be adopted by major ad networks

Programmatic will continue to be a big trend in the mobile advertising industry in the near future. Expect a growing revenue stream and a tremendous push due to the increased publisher focus on monetization and yield optimization. Major ad networks will adopt RTB standards to sell their inventory to the highest bidder.

  • Advanced audience-targeted approaches will help marketers acquire high LTV users

Programmatic advertising will continue to shift away from simply impressions to a more advanced audience-targeted approach as smaller mobile app marketers take advantage of the developing technology to build audiences. Audience segmentation and lookalike modeling will be more accessible to everyone. According to Appsflyer, media costs have increased 28% year-over-year. On the other hand, average revenue per user (ARPU) has risen 40% year-over-year, proving that mobile marketers are shifting their budget from driving cheap installs to focusing on monetizing quality users. So by paying more, app marketers will get more—more quality users, more retention, and more ROI.  

  • Creative will be king. Again

The rapid development of more advanced targeting capabilities for mobile programmatic media buying has paved the way for a new set of creative possibilities. By executing smarter, faster, and more effective ad creatives, app marketers will enhance their opportunities to grab users’ attentions. Native, playable/interactive, and video ads, which are already growing in popularity due to their effectiveness, are expected to gain momentum this year. Having better targeting capabilities and choosing the most effective ad format will enable app marketers to drive campaign performance toward stronger ROI.

Conclusion

2018 will bring inspiration, motivation, and innovation to app marketers. Summing up, we can say that the future of mobile app advertising is programmatic. Making programmatic the key driver of your mobile advertising strategy will lead you to app marketing success.

 

Topics: Programmatic Advertising, News & Updates