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What Factors Affect Mobile Advertising Revenue?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 29 August 2016
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Mobile advertising revenue is a form of revenue generation that is achieved through the use of marketing campaigns involving the generation and distribution of advertising messages to various types of mobile devices. As an emerging mode of advertising that has come about since the beginning of the 21st century, the potential of significantly increasing sales using mobile advertising has prompted many companies to enter this market and actively look for ways to reach consumers who rely more and more on handheld devices as their chief means of receiving news and entertainment, and searching for products to buy. There are several factors that affect mobile advertising revenue, including the structure of the advertising, how well it is targeted to specific groups of consumers, and the cost of the advertising itself.

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As with any type of marketing and advertising campaign, it is important for companies to identify the type of ads that regular users of mobile devices will be open to receiving. If the advertising is not structured in a manner that leaves those consumers feeling interested in and attracted to the products and services offered, then the mobile advertising revenue generated from those ads will not be particularly impressive. To that end, it is necessary to assess the current demands of consumers who are more likely to make frequent use of mobile devices that are connected to some sort of network and decide how to deliver those ads, either in the form of text messages or other electronic strategies that are relevant to how mobile phones are being used.

Another factor that will affect mobile advertising revenue is how well the ad campaigns are targeted to specific groups of consumers. Here, the same type of considerations used in any type of advertising campaign will come into play. Ideally, the marketing strategy will take into consideration demographics such as location, age, gender, culture, and economic status when designing ads that will present goods and services in the most appealing manner on the small screen of a mobile device. Unless this type of targeting is engaged, the advertising will likely be so broad as to have no appeal to more than a small percentage of users, ultimately hurting sales more than helping.

Mobile advertising revenue is also ultimately affected by the cost of designing and deploying the advertising. Simply put, the amount of revenue that is ultimately generated as the result of the advertising must justify the expense of creating and distributing those ads. Unless the revenue stream created from the response of consumers is sufficient to offset the costs of the effort, the project is considered a failure and there is a need to restructure the approach.

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