Since Google's announcement of improved campaigns, all eyes
have been on mobile. Advertisers who have felt the pain of lower ROI are left
wondering, "Are improved campaigns going to help me win in Google mobile –
or are they designed to help Google win in mobile?"
Let's start by acknowledging that yes, mobile is growing
like crazy. People are using these devices at an accelerating pace, and
eMarketer has forecasted mobile advertising to be almost an $11 billion
business by 2016, up from 315 percent from 2012.
Interestingly, a recent study by IAB reports that
"mobile" doesn't mean "remote," as mobile activity happens
most frequently in the home. This finding contrasts with the widely held
assumption that mobile ads are most viewed by consumers "on the go."
But the IAB findings explain that the period of highest
usage of mobile devices occurs during leisure activities at night, somewhat
than during the "on the go" errand-running times of the day. That
said, time of day and type of activity have implications for mobile
performance.
An internal adMarketplace study recently showed that tablets
converted 93 percent as efficiently as desktops while smartphones were only 49
percent as proficient. Other reports support this finding, including this one
from independent research publication, Marketing Charts, which highlights low
conversion rates on phones when compared to tablets and desktops during the
holiday shopping season.
Reported revenues per click for each device reflect the
disparity in performance on phones as well. The chart below shows us how far
behind phone click volume is compared to tablets and desktops.
The good news is search ad providers are acting to give
advertisers the tools to stay profitable despite this disparity in performance.
Google's enhanced campaigns lets advertisers adjust phone bids as a percentage
of their desktop/tablet bids in a single campaign; Bing Ads allows for separate
targeting by device type at the campaign and ad group level.
Having this granular control over a rapidly expanding market
is great, but it doesn't change the fact that you need to hold mobile to a
different standard. As marketers, you're under pressure to guide mobile
consumers down the conversion funnel and generate an immediate profit on your
investment.
Consumers, however, don't feel the same pressure to convert instantly.
Aside from creating mobile-friendly websites and targeting ads with
mobile-friendly assets, you can't force mobile users to behave the same way as
if they were at their desktop during the day.
So how do you win with mobile? Instead of holding mobile
performance to the same standards as desktop and tablets, you should adopt an
altered and more realistic set of KPIs. Here are three strategies to succeed in
today's mobile marketplace:
1. Relax Your ROI Goals
If your aim is 5:1 for desktop and performance to date on
mobile is 2:1, consider setting a target ROI of 3:1 for mobile instead.
With lower ROI expectations, you can continue to connect
your target audience on this device and be more likely to achieve your goals
given what you know about behavior by device type.
2. Analyze Engagement Metrics (e.g., Time on Site,
Pageviews, Unique Visitors)
Invest more time and resources into mobile experience as you
do with desktop. Find where users are looking, and more importantly where they
aren't looking, to optimize their mobile experience.
While tracking conversions across devices can prove
difficult, mobile advertising does get users deeper into the sales funnel.
Remember, many of today's consumers conduct product research with their phone,
and finalize purchases with their tablets or desktops at a later time.
So consider this a "higher funnel" activity, and
consider allocating branding budgets – not strictly direct response budgets –
to mobile devices.
3. Think about How You Use Your Own Devices
If you want to show a friend a funny video on YouTube, are
you more likely to get together around your laptop or pass around your tablet?
Do you tend to make more purchases on your mobile devices during your commute
or when you get home to your laptop? My experience on both questions is the
latter.
Once marketers and advertisers acknowledge that consumer
behavior conforms to device capabilities, they can begin to adapt their
expectations and hold mobile to a different standard.
Summary
As the current research shows, phones simply aren't being
used as often for purchases. Mobile is a more efficient tool when used for
brand awareness and research than direct response. Adapting your marketing
strategies accordingly can decrease your likelihood of panicking when you
compare mobile to desktop performance and missing out on this critical
opportunity to promote your brand.
Broadening your expectations will allow you to stay in
communication with your customers throughout the course of the day and enlarge
the likelihood that they'll convert.
Until the day when mobile becomes the ultimate purchasing
agent, advertisers should take mobile for what it is – a brilliant tool for
brands to strengthen relationships with consumers.
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