Hot Monetization Trends To Watch in 2013

By Amy Vale
Earlier this year, analyst Mary Meeker talked about the huge gap between time spent on mobile devices and the advertising dollars allocated to mobile. That represents a goldmine of opportunity for publishers and app developers. So we wanted to highlight some key mobile trends that show real monetization promise for 2013.

Mobile Integration

We, as consumers, are multi-taskers. We don’t just watch watch TV. We don’t just read a book. We don’t just play a game of Scrabble. We have multiple devices in our hands (and our bags) at all hours of the day and everywhere we are. We sit in front of the TV set, while simultaneously texting friends on our Smartphones, checking email on our laptop or desktop computer, and read the latest celebrity scandal on our tablet device. So it goes without saying that publishers and app developers must integrate mobile first into their overall advertising strategy (and allocate a significant portion of their advertising dollars into this channel).

To ensure that publishers and app developers capitalize on their mobile traffic and revenue, it’ll be important to cater the creative used in mobile ads to the channel specifically. That means not replicating the same creative used on a regular website and simply repurposing it to fit onto the smaller screens of Smartphones and tablets. For instance, iPad usage tends to be higher on weekends, while desktop is typically lower. It’s now thought that publishers who serve ads across more than three platforms will be 21 times more effective than those who focused on only one platform. Understand the complexities of the mobile channel, analyze and measure what’s working (and not working) and tailor your creative to maximize ad performance and ROI.

More Targeting

Who doesn’t want to see an ad at the right time, or in the right place? In the world of mobile advertising, one of the biggest keys to monetization is relevance – in other words, the ability to target and reach your audience in a way that matters. Some of the strongest parameters offered by publishers to deliver mobile ads have been location, day-parting and contextual keywords. Now, as we move into 2013, it will require publishers to strike a delicate balance and layer multiple targeting options without losing scale.

Social Media

Social networking has fundamentally altered the way users interact not only with their mobile devices, but also with ads. According to comScore, 45% of all Facebook traffic and 55% of all Twitter traffic comes from mobile. Recently, the Wall Street Journal reported that Twitter is beginning to see strong revenue growth by delivering ads across mobile devices. People who see a Twitter ad on their phones are more likely to click or interact with it in some way, which is how Twitter gets paid for advertisements. While there is speculation on why Twitter is seeing its mobile ads “click,” it will be interesting to see how social media will impact the effectiveness of, and revenue generated from, mobile ads. If you ask me, this is only the beginning for this trend.

Augmented Reality

Mobile augmented reality, also known as mobile AR, is still relatively new. But by 2015, Juniper Research predicts that globally there will be 950 million mobile handsets, over 50,000 mobile AR apps, and mass adoption of AR in ads and apps. It’s estimated that the mobile AR market will reach $732 million in 2014, fueled by pay-to-download apps, subscription services and advertising.

Recently, IBM launched an AR app for grocery stores that lets users pan the store’s shelves with their Smartphones to receive personalized product tips, recommendations and coupons. What’s smart and effective about a mobile AR app of this kind is its ability to close the gap between the in-store and online shopping experience. While mobile Augmented Reality may not offer a huge opportunity for monetization at scale, it can however, create a rich brand experience.