Growing Mobile App Industry Creates Opportunity for Advertisers

It was just two years ago when Apple launched their App Store and the mobile app craze began. Now mobile users can find an app for almost anything whether for practical purposes such as the weather and news or for pure entertainment value such as a fog horn or whoopee cushion. As leisure marketing specialists, that’s good news for the gang here at CCT Advertising. Apple now has hundreds of thousands of apps for our clients’ customers, while Google’s growing Android Market has tens of thousands available to smartphone subscribers.

Regardless of whether the purpose of the app is useful or entertaining, the user is engaged and that creates another platform for advertisers to target mobile consumers. According to Media Life and a report from the research group Borrell Associates, U.S. spending on ads delivered by mobile apps is expected to be more than $300 million in 2010 and it is predicted that number will increase to $8 billion in the next five years. The report noted the majority of the spending will come from national advertisers.

App advertising is very similar to online advertising in that you can target to demographic and regional specifications. Ads can be purchased as a CPM (cost per thousand) or PPC (pay-per-click) model. Banners appearing within the application seem to be the most common type of app advertising similar to display advertising on traditional web sites. Other types of app advertising include interstitials which are banners displayed while the application is loading and pre-roll/post-roll ad opportunities that feature a short video and are usually available with apps that focus on games and video.

Cindy Krum, founder and CEO at Rank-Mobile, was asked by Media Life what major change will occur in the app marketplace over the next five years. Krum explained “The biggest change will probably be the movement away from assuming that mobile means iPhone.” Krum explains that the Android operating system is not limited by only working with one carrier or one handset so it will be able to meet different user needs and price points.

As the Android Marketplace and the mobile app industry overall continue to grow, it will provide greater reach potential for advertisers and Denver-based advertising agencies like CCT will continue to monitor this evolving trend in mobile media.

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