GameHouse Partners Blog

Mobile advertising is receiving an increasing amount of media attention and hype – and while we’re as enthusiastic as anyone about the opportunities of mobile advertising, it’s important for new mobile advertisers to be aware of the limitations of this medium as well.

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What is your business hoping to accomplish by buying mobile ads? Chances are, the first word that comes to mind is “sales”, either in the form of app downloads or the sale of actual products. While it’s true that making more sales is the ultimate goal of advertising, there are other ways to measure the success of a mobile advertising campaign that go beyond sales.

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According to a recent Nielsen Mobile Insights study, there is a slight discrepancy in smartphone ownership between various ethnic and racial groups. Based on recent survey data, minorities are more likely than white people to own smartphones.

For example, the study found that 67% of Asian American mobile subscribers owned smartphones, along with 57% of Hispanics and 53% of African Americans.

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A recent blog post from an investor named Jean-Louis Gassée raised some provocative questions about the future of mobile advertising, and suggested that mobile ads are never going to work as well as print and online display ads, and will never be as lucrative for advertisers and publishers as these older forms of advertising.

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More mobile apps are appearing on app marketplaces with each passing day, but despite the enthusiasm for mobile apps among consumers, the media and the app developers themselves, many app developers are struggling to find a way to make money from their creations.

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Getting started in mobile advertising and mobile marketing can seem like a daunting prospect, with a universe of new terms and buzzwords. But despite the new vocabulary, many aspects of mobile advertising are not as complicated as they seem. Once you become familiar with the terminology and parameters of mobile advertising, it’s easier to see the ways that this new media format can help your business grow.

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In-app mobile advertising is seeing some of the biggest growth of all advertising media, and is becoming a major revenue source for app developers. The reason why: Smartphone users are spending more and more time with apps, not with web browsers.

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Mobile advertising is a fast growing trend worldwide, but, the opportunities for marketers and app developers are not always the same in every country. For starters, the wealthiest countries are not always the earliest adopters of mobile advertising, and will not always be the biggest markets for mobile ads.

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According to this article, more Americans now own smartphones than traditional feature phones. In fact, 53% of Americans who own cell phones now own smartphones, making this the first time that smartphones have eclipsed feature phones in total ownership. In addition, during 2011, total global shipments of smartphones outpaced global shipments of PCs.

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Many mobile advertisers make the mistake of thinking that “if we build it, they will come” – that simply by purchasing some cost-per-click (CPC) advertising, the clicks will soon come and the sales will soon roll in.

Of course, the reality is more complicated.

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