The solution to the profit of mobile advertisement: need to use geographic information

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Beijing Time June 4 News, according to foreign media reports, based on the geographical location of the United States advertising services and marketing company Thinknear CEO Ellie Cooper Noi (Eli Pornoy), said recently, mobile advertising can not find a profit model of the biggest obstacle is not to achieve accurate targeting of customers, The best way to solve this problem is to use geographic information.

The following are the main contents of the article:

Mary Mik (Marry Meeker) This week's report focused on the mobile industry's earnings model, which Mick believes is consistent with the focus of consumer attention, and it just takes time. However, Mick did not spell out the root causes of the problems facing mobile commercialization, nor did he tell us how to seize this opportunity.

The mobile sector is now experiencing explosive growth, with more than 100 million smartphone users across the U.S., who spend an average of 60 minutes a day on mobile devices to get information and view mobile devices more than 40 times a day. Advertisers naturally will not let go of these unusually active user groups. However, as Mick showed in his speech, the time spent on mobile phones is disproportionately proportional to mobile ad funding: Consumers spend an average of 10-25% time on mobile platforms, but advertisers only put 0.5-1% 's budget into the field.

For many people, this is where the opportunities for the mobile industry are. Because the difference shows that advertisers will gradually increase spending to attract large sums of money into the mobile industry. This is a positive sign for companies such as Facebook and Pandora that have just started IPOs, as they have huge page traffic but haven't been able to rely on advertising to generate enough revenue.

Personally, I do not agree with this "input is output" theory. Advertisers and advertising agencies are not stupid, they all have smartphones and rely on the iphone and Android platforms to get information in their daily lives, and even their job is to study these new gadgets. But the 2012 mobile industry has no surprises.

Why is the money flowing to the mobile industry?

Advertisers understand that the only indicator of the effectiveness of advertising is relativity, the Golden Law. For example, if the target user lives in Los Angeles, it's hard for advertisers to sell me snow boots in the summer. So the more accurate the advertisement, the greater the likelihood of getting output and the more successful the promotion. The current mobile ecosystem can be said that there is no precision, so often advertisers can only cast a large net will be able to change some of the "success", but the low efficiency of promotional activities or make advertisers very dissatisfied.

What is the essential element of mobile advertising?

Most of the solutions given by most people may be cookies, but cookies used in traditional markets are simply not available for mobile applications. And even if cookies are available, I still don't believe that cookies alone can push mobile advertising to grow dramatically.

In fact, cookies help advertisers understand the history of their users and publish targeted ads based on these data. But the mobile market is different from the traditional desktop market, for example, when I'm using a PC, I'm used to studying certain things, so it produces a lot of browser browsing history. However, in mobile devices, the data for browsers and applications are often fragmented and incoherent. For example, when I'm bored, I use my cell phone, I use my cell phone when I check things, I use my mobile phone every day. Therefore, it is difficult for advertisers to draw useful conclusions from these data.

The answer lies in history.

Looking back on the history of digital media, we find that the current state of the mobile industry is not uncommon. When the search engine was born 15 years ago, they only stacked some ads on the home page without any specific stack, unable to provide any excellent products for advertisers. Therefore, the biggest advantage of these search engines is only the network tentacles and the number of advertising, there is no precision to say. But then, when Overture and Google began to post targeted ads based on user search results, the companies ' advertising revenues soared.

A few years later, banner ads on the site are still struggling. While advertisers know that users are on the Internet at all times, few companies are willing to invest in the sector, because the only advantage of Internet media is the spread of scale and network tentacles. Later, the cookie revolution began to rise, advertisers can finally according to user browsing history to publish targeted ads, so far, the scale of the online advertising industry has reached an unprecedented level of 25 billion dollars a year.

The right mode of mobile advertising

The only way to narrow the gap between the user's time in the net and the advertising investment is to find the index that can accurately measure the efficiency of the advertisement to win the trust of The Advertiser.

The geographical positioning of mobile devices may be the right way out of this dilemma, because the biggest feature of mobile devices is portability, the vast majority of people with mobile phones 16 hours a day, up to 40 times a day to see the phone. Moreover, many smartphones now have GPS global positioning systems in place, so they have the ability to provide accurate location information to advertisers.

A lot of people think that location-based positioning advertising is only to use GPS positioning information to users with the surrounding environment ads. But the meaning of mobile positioning ads is not limited to this, mobile positioning ads need not only know where people are, but also know what they are doing and the surrounding environment.

In fact, the street hawkers in New York have the most profound understanding of the concept. They learned to use carts to sell DVDs, sunglasses and wallets on street corners early on. If it started raining, they would put away their DVDs and sell their umbrellas immediately. This is a very smart sales strategy, they can be based on people's behavior and the surrounding environment at any time to adjust the market strategy to maximize the satisfaction of user needs.

Now, with mobile devices and user location information, advertisers have the same opportunities as New York street vendors. Specifically, advertisers use the positioning function to infer the user's current behavior: If at the airport, it is likely to be a traveler; As advertisers know exactly where to put their ads, they are bound to know the surrounding environment, including weather, vehicle traffic and nearby activities. This creates the huge profit space for the mobile advertisement domain, thus gives full play to the mobile advertisement vitality.

Although Location-based mobile advertising is a huge opportunity, it is not entirely free of problems. Because the industry is not mature, so it is not easy to publish similar ads, and the privacy issue is more like a bomb at any time to seize the heart of each advertiser, so tracking and reporting the effect of advertising tools are still in development. Fundamentally, to really improve the effectiveness of mobile advertising to attract more advertisers to invest in money, need to really understand the unique mobile platform and give full play to its unique advantages, and geographical positioning and mobile equipment portability is the road to success.