Marketers today cannot ignore mobile advertising as a way to generate brand awareness and drive sales of their products because 91% of Americans have a smartphone or tablet and look at it an average of 63 times a day.
By 2025, CNBC predicts that 73% of Americans will use a mobile device exclusively to access the internet. Increasingly, this online access is through apps rather than through a web browser to access particular sites. Marketers spent more than 30 billion dollars on all forms of mobile advertising in 2018, and in 2020, over seven billion dollars was spent on in-app advertising alone.
Four hours and 33 minutes are spent on smartphones and tablets every day by the average user: that's a lot of potential ads users can see, click, and use to make buying decisions. The only other thing that comes close to that amount of time spent is television at four hours and 16 minutes, but there are even greater benefits to mobile advertising than to television ads.
Why Mobile Ads Are So Beneficial to CPG Brands
Television ads are great for brand recognition, but dollar for dollar, mobile ads can be even more beneficial than TV. One of the reasons why mobile ads are so beneficial is because they provide an instant way for viewers to buy a product or service by clicking on the ad or a link within it.
Not only do mobile ads give instant ordering power, but they also offer a lot of data about how the ads are being viewed and interacted with, along with exactly who (demographically) is viewing the ads in many cases.
The accessibility of smartphones means that ads are viewed at times and locations that cannot be matched by any other medium. People look at their smartphones at times and in places they don't look at any other devices--just before bed, right when they wake up, and at many intimate and unguarded moments in between.
When you watch TV, you know you are being advertised to, and there's a level of formality there that doesn't exist on smartphones. People are comfortable with their phones; in many cases, they hardly know they are being advertised to when in fact that's exactly what's happening.
A Little or a Lot
To top off all these other advantages, mobile ads are cost-effective. Campaigns can be customized and sized up or down depending on effectiveness. Mobile ads offer flexibility and the ability to adjust quickly to market changes and fluctuations.
No matter what a CPG brand's marketing budget is, mobile ads can fit in and offer high value for the investment. Particularly for brands with budgets that don't allow more expensive forms of advertising like television, mobile advertising is probably the most effective option to get the best possible results with that smaller budget.
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Topics CPG Trends