Mobile - Katz Marketing Solutions | Radio Advertising | Media Agency

The company‘s mobile-payment system, Google Wallet, is another way it‘s movingbeyond the standard model. Storing a user‘s credit-card information does two things: Itmakes mobile purchases easier, since a person doesn‘t have to enter payment informationon a small device, and it provides a way to follow the money. Without a paymentplatform, Google and other ad networks have no way to determine whether an adpersuades a user to make an offline purchase. But if you use Google Wallet to pay aflorist after Google sent you an ad from that florist, Google can make some conclusionsabout that ad‘s efficacy and adjust prices accordingly.Facebook‘s rapid mobile-ad expansion has been possible because more than 60 percent ofits users access the social networking site on a mobile device. The company attributes itsrecent growth in mobile ads to what is known in the digital-ad world as ―nativeadvertising,‖ or advertising that‘s integrated with a site‘s regular content. In Facebook‘scase, that means ads that appear in a user‘s news feed, which the company calls a―sponsored story.‖―We want to make the ads on Facebook part of the user experience in a seamless way,‖says Gokul Rajaram, Facebook‘s product director for advertising. That not only meansincorporating ad content into news feeds, but also storing users‘ credit-card informationso they can make purchases with a single click. ―On mobile, the need to reduce friction inany transaction is exponentially greater,‖ says Rajaram.On Facebook, each user can be turned into an ad network. Sponsored stories are firstdistributed to users who have chosen to be fans of an advertiser‘s Facebook page. If a fanthen likes the ad (often consisting of a coupon or other discount) in a sponsored story, it‘sdistributed to that fan‘s network of friends, whether they liked the advertiser‘s page ornot. ―We‘re finding that more than 50 percent of all claims of offers come from friends offans, not fans,‖ says Rajaram, adding that Facebook‘s research showed people recalled anad referred by a friend 10 times more often than a typical display ad.Twitter is also pursuing a native-advertising strategy, in the form of promoted tweets, butcustom formats for Facebook and Twitter will not work for the larger world of the Web,meaning that the magic formula for mobile advertising remains elusive—especially forsites that have fewer visitors. ―Digital advertising is about getting my message in front ofa lot of people at a low cost,‖ says Rare Crowds‘ Picard. ―The more we carve up thatinventory, the harder it is to get that message out.‖ Facebook can do sponsored stories, hesays, because it has such a large audience. ―But not everybody‘s Facebook.‖The bottom line: Traditional advertising doesn’t translate to mobile devices, andcompanies are still struggling to come up with effective strategiesA mobile video ad from Scion―Mobile video advertising is effective for both brand building and driving an action,‖ Mr.Yang said.169