Google: Here’s How Well Mobile Ads Can Work

From my Forbes.com blog The New Persuaders:

The big rap on mobile advertising from marketers is that all they get is a tiny piece of a tiny screen to tell their stories–nothing like TV spots, print ads, or even Web banner ads. That’s one reason spending on mobile ads remains so small that it’s worrying investors in every online company from Google to Facebook to the New York Times, all of whose audiences are using their services more and more via mobile phones and tablets.

The other reason the year of the mobile ad always seems to get pushed out to next year? Marketers aren’t sure how to measure their impact. Measure only clicks on the buy button, without tracking how mobile ads lead customers to physical stores as they surely do, and it doesn’t look like many mobile ads pencil out as well as Web ads. It’s no wonder that a new survey out this morning by the Chief Marketing Officer Council shows only 14% of CMOs are satisfied with their mobile efforts, and 43% definitely aren’t.

Google, for one, is pushing hard to change this situation, especially since both these concerns have emerged front and center among marketers in the six months since Google launched its Mobile Playbook intended to help brands do more effective mobile marketing. With a new update to its own mobile marketing vehicle announced this morning, Google is aiming to answer those concerns using a raft of real-world examples.

First, several examples of mobile campaigns illustrate that the main problem isn’t lack of screen space, but lack of imagination by marketers. “Mobile is a great canvas for brand-building,” says Jason Spero, Google’s head of global mobile sales and strategy. “It’s going to produce some of the greatest campaigns in digital. But it’s shocking how far behind the [consumer] consensus the broad base of companies are.”

But some are managing to use the distinctive features of mobile devices to vault ahead of that laggard pack. Google points to several award-winning mobile campaigns from this year’s Cannes Lions Festival that showcases creative advertising. They look nothing like standard banner ads and, for better or worse, nothing like the “native” ads that are nearly hidden inside the news feeds of Facebook and Twitter.

That General Motors ad at the top, for instance, was a Game Time app that blatantly hijacked people’s attention from the game itself and, as the video says, “distracted them from watching our competitors’ ads.” Other mobile ads by Korean retailer eMart, Brazilian financial services firm Bradesco, Toyota, and others used smartphones’ cameras, touchscreens, GPS location data, and accelerometers to provide experiences not possible on the desktop, from back-seat driving games to QR codes that provide deals only at noon local time to attract lunchtime shoppers.

Second, Google’s calling out examples of how to measure the impact of mobile campaigns beyond the click, which may have even less meaning on mobile phones than on the Web. Adidas, for instance, with its agency partner iProspect, determined that including the real value of a click on a store locator button, which it had identified from store data, proved that mobile ads were paying off in in-store sales. “Mobile is driving behavior in the real world,” says Spero, and cases such as Adidas’ are starting to prove it.

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Marketers Send Facebook Message In Q2: Show Us

Facebook CEO Mark Zuckerberg (Getty Images North America via @daylife)

From my Forbes.com blog The New Persuaders:

Facebook may have disappointed investors with its first earnings report as a public company, but the results also reflect disappointment among an even more important group of constituents: marketers and agencies.

It’s not that Facebook did badly on the sales front. It exceeded admittedly dampened expectations, not to mention hitting the Street’s profit target. Nor do the folks who write the checks to run ads on Facebook spend much time watching FB on the stock ticker. “Whether the stock is up or down is not a big concern,” says David Berkowitz, VP of emerging media at Japanese ad giant Dentsu’s digital agency 360i.

What is? Results. While Facebook today trotted out plenty of stats and examples of success stories for the Sponsored Stories that it clearly views as the most effective ad it offers, the company hasn’t yet managed to close the deal for many marketers and agencies. “Facebook has to do a better job of articulating the value of its advertising to the brands,” says Heather Pidgeon, VP of services for iProspect, a digital agency owned by Aegis Group. “They have yet to say, ‘This type of advertisement works for this type of advertiser.'” …

Read the full post at The New Persuaders.

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