Study Suggests Marketers Are Over Investing In Mobile Web Ads

February 22, 2019 Tapjoy Marketing

Mobile users are spending more time in mobile apps than the mobile web, but in-app advertising budgets have been slow to reflect the change. Are you missing out on potential optimizations?

A recent study from PubMatic and Forrester, and summarized by The Drum, suggests that mobile marketers could be wasting a material portion of their budgets on mobile web ads.

The study’s authors surveyed 336 advertisers to reveal that while mobile advertising spend is on the rise, the division between in-app and mobile web does not align with how mobile users are spending their time. Most marketers surveyed are operating at a near even split between mobile web and mobile in-app spending, which may not be the ideal choice when it comes to reaching their audience.

Studies like this one consistently show that users spend far more time in-app than mobile web site -- around 90% more in most cases -- meaning that marketers are over-investing in mobile web ads, missing out on potential optimizations.

“What we're finding...is a lot of [buyers'] systems and metrics are still tied to the desktop environment,” Paulina Klimenko, senior vice-president of business development and general manager of mobile at PubMatic, told The Drum. “They're still thinking cookies. They're still thinking cost-per-click... We're suggesting that buyers and advertisers need to adjust to the new realities of the app environment and rethink how they measure, adjust their reporting systems and move away from that cookie mentality.”

The study also revealed that despite the dated platform choices, mobile marketers are taking advantage of a diverse array of modern advertising models:

  • 80% use cost-per-click

  • 76% use cost-per-action

  • 74% use cost-per-acquisition

Meanwhile, marketers increasingly see value with in-app advertising, especially in programmatic formats. 68% of respondents prefer programmatic in-app advertising, and 59% use open exchanges. This is a trend advertisers are picking up on, and we’re curious to see where these opportunities will take us.

What is Cost-Per-Completed-View Advertising, and why is Tapjoy one of the few networks to offer it? Find out in our latest article!

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