For Mobile Devices, Think Apps, Not Ads

With the increasinguse of mobile phones,mobile advertisinghas also increasedsignificantly.

But the presentItsy-bitsy mobileAds don’t workWell and peopleDislike them

Why Mobile Ads Don’t work

1. People Don’t Like Them

2. THERE’S NO RIGHT SIDEMobile screens are toosmall to have a usable

right margin, so ads popup in unexpected places.

3. THE “FAT FINGER” EFFECTmany a time, a mobile

ad gets clicked just becauseits to small.

The World Of Mobile Apps

The usage of Mobile apps is increasing ascompared to web and hence can be used for effective mobile advertising

DifferentCategoriesOfMobileApps

1. GAMES AND ENTERTAINMENT

2. SOCIAL NETWORKING

3. UTILITIES

4. DISCOVERY, INCLUDING APPS FOR YELP, TRIP ADVISOR AND FLIXTER

5. BRANDS SUCH AS NIKE AND RED BULL

STRATEGIES FOR BETTER MOBILE ADVERTISEMENTS

APP

Companies like espn and airlines(e.g indigo) provide mobile Apps to customers for their convenience

Constraints for Convenience Apps

First, although they can strengthen relationships with existing customers, they aren’t very effective at acquiring new customers. Second, established brands with large customer bases have an inherent advantage in using these apps to drive retention and engagement; such apps aren’t a viable alternative for every company. Third, as more and more companies build convenience into their apps, they will find it harder to differentiate themselves on that basis.

OFFER UNIQUE VALUE

In 2006, Nike Launched Nike+ for monitoringSpeed, distance and

calories burnt during running

OFFER INCENTIVES

COCA COLA-“REFILL HAPINESS”

In march 2012, Coca Cola installed devices which dispensed 20 MB data to the phone (having a mobile app specially made by coca cola) kept in front of it .

PROVIDE

In September 2012, threemonths after acquiring mobilesocial gifting company Karma,Facebook allowed users tosend gift coupons to their friends

RED BULL’S GAMING APPS

CHALLENGE:

Bose was launching a revolutionary new technology: In-ear noise cancelling earphones.Priced at over USD 300, this was a premium product aimed at affluent audiophiles andfrequent air travellers. The objective was to drive awareness in this audience in the mostpersonal way - Mobile.

• Present within a 500 meter radius of all airports in India• Visiting 5 star hotels in the vicinity of airports• Living in the top 10 percentile of Residential areas

SOLUTION:AdNear built a customized mobile audience for Bose targeting Affluent & travellers who were:

OVER 5000 CLICKSDELIVERED PER DAYIntelligence of top performing retail stores by reach and by response rate shared with the client.

• Apps are a more creative way than mobile ads for the companies to interact and establish healthy connections with their customers because-

1. App developers are abundantly available and hence getting apps made in not very costly.

2. Mobile ads are not able to engage the customers for a long time. Also people dislike them.

CONCLUSION

CREATED BY SHUBHAM GANGILIIT(BHU), VARANASI DURING ANINTERNSHIP BY PROF. SAMEER

MATHUR, IIM LUCKNOW

DISCLAIMER