[whysonot]

(a) Mobile usage > 50% of total internet usage (b) Mobile advertising ~ 25% of total internet advertising

Gap between (a) and (b) represents a ~$25B+ opportunity (slide 16).

Last few years, mobile ads have been propped up by VC funded companies buying installs. This means the opportunity is primarily for brands.

Why do you think it has been so slow? There seem to be enough mobile platforms to advertise on. Are the ad units too expensive for brand awareness campaigns? Or maybe that's wrong and inventory is limited and the platforms aren't charging enough? Maybe large companies are just slow?

I guess I'm trying to understand what shape this opportunity takes. Is it for new platforms to emerge? Existing platforms to sign more customers or charge more for their ad units? Novel ad exchanges to make it easier for companies to advertise on mobile?

[imjk]

"Are the ad units too expensive for brand awareness campaigns?"

Yes and No. No, in the sense that they're not too expensive relative to tradition desktop display rates, but yes, in the sense that they don't perform to the same same standards as desktop ads. The exception would be things that are native to mobile like app installs, which are also often incentivized through the various platforms they're advertised on. My theory is that mobile ad rates have to come down significantly to match the performance rates of desktop ads to meet the performance across all sectors, but native specific products like apps are keeping the prices higher in part through better performance but also because they're in a sector that's particularly over-funded right now and can afford the higher acquisition costs while cash is flush.

[jgalt212]

I won't advertise on mobile (phones, not tablets) because the screen size is too small.