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Mobile Advertisement Changing the Marketing Landscape

The advertisement space has experienced vast changes with the growth of the mobile market. Technology giants like Facebook and Google as well as others are undoubtedly honing on the mobile advertisement space. The advertisements on mobile devices are often embedded into applications and potentially require different approaches to revenue generation. Facebook has reported significant revenue generation from its mobile advertisements while some articles report that Google has been missing its revenue generation forecast ads on mobile devices. Regardless of the current trends of revenue generation, the mobile advertisement space is inherently its own beast and has changed the way in which companies display information to users; mobile advertisements could have potentially different marketing schemes in which search queries are not the only factor in determining which advertisements to target users. With mobile devices, companies are equipped with potential location data, the physical devices themselves, and even subtle user habits native to only mobile applications. The wealth and differences in information from mobile to desktop devices could potentially change the model of selling mobile advertisements or even how to value them.

The growth of the mobile market has a two-fold impact on the topics discussed in this course. Firstly, search engine advertisements on mobile devices do not necessarily adhere to the traditional slot-based model as our initial assumptions separated search results from advertisements. This is often attributed to the limited size and screen real estate of mobile devices versus desktop computers.  As a potential solution, advertisements could be integrated into search results themselves, similar to the top-down slot-based model. In some mobile applications, ads are ‘popped up’ from the bottom. In other, advertisements take on complete pages in which users dismiss or may disable. The bottom line, however, is the sheer fact that mobile advertisement is inherently different than desktop advertisements as many factors like ‘pay per click’ or ‘slot-based advertising’ may potentially change. However, the bigger question is whether the changes in values and potential for mobile ads will change the pricing options or how mobile ads are sold. If we abandoned the slot-based model, perhaps the way in which mobile ads are sold may be redesigned or changed. Overall, it seems that the advertisement space is drastically being impacted by mobile devices in which its revenue generation as well as audience reach has been predicted by many to surpass desktop ads.

References:

http://www.pcworld.idg.com.au/article/557611/google-misses-forecasts-while-cost-per-click-also-dips/

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=google%20cost%20per%20click%20drop

http://money.cnn.com/2014/10/16/technology/mobile/google-mobile/index.html

http://marketingland.com/desktop-mobile-changing-guards-upon-us-74679

http://www.slate.com/blogs/business_insider/2014/10/28/facebook_revenue_growth_is_coming_from_mobile_ads.html

 

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