When you see an ad in an app, ever wonder where it comes from? More than likely the developer signed up with adMob, inMobi or a host of other mobile ad networks. In general, the amount the developer makes is generally very low in comparison with what they could make from more targeted ads.
Burstly is trying to change that. With their new system advertisers can select the targeting they have been lacking. According to MobyAffiliates , This is potentially very big news for mobile ad buyers including affiliate marketers, app promoters and so on. Blind networks like admob (where you can’t choose where your ad will be shown) have been great for providing scale and reach and good device, operator and geographic targeting capabilities but most people find that the traffic is fairly low quality i.e. it doesn’t really convert well into sales or other actions.
A recent report by mobileSQUARED claims that apps only contribute 2% to the mobile advertising total. The bulk being of mobile ad revenue being generated by search and mobile display ads, accounting for 46% and 29% respectively. Google dominates the mobile search game with nearly 98% of all searches going through their engine according to Chitika Research.
Burstly, and I am confident other platforms will change the situation for app developers as they become aware of the mobile advertising choices available to them. Almost every app has a certain demographic that it appeals to, thus being able to better target should result in higher ad revenues through CPM, CPC as well as cost per action. In fact, as mobile ad platforms get more sophisticated and blend online data with mobile data CPA campaigns should return better eCPM’s for app developers.
Advertisers looking to reach targeted audiences through app’s will be willing to pay more when a performance metric is applied such a generating a solid lead or a sale. Whereas an impression or even a click does not measure user interest or engagement, a CPA campaign does both by design . This is where performance marketing will have a terrific opportunity to reshape itself from the rather wild west positioning it enjoys right now.
I hope Burstly is only the beginning of a mobile advertising landscape where Demand Side Platforms and performance marketing can meet for a better return on ad spend for advertisers. For app developers the path is clear that building in the ability to choose multiple ad platforms into their apps will return much greater revenue than the present dismal performance of ad units in their apps.