In North America, mobile advertising revenues grew 111% from 2011 to 2012, while at the same time netting 83% growth globally. Growth in Asia just slightly outpaced North America during the same period. Contributing factors to the growth are easy to identify – widespread smartphone adoption and more time spent on mobile devices, along with increasingly better monetization of mobile ad services.
Mobile ad services are figuring out better ways to optimize the advertising experience for advertisers. This is obviously the key to growing revenue. Something that Apple understands, as they are about to launch iTunes Radio as an ad supported platform. So here’s what I would do if I were in charge of monetizing that platform.
- iTunes has 500 million users across the globe. Those users are mobile, and they like to consume content, mostly music. But over the past few years they have decided that they don’t have to own that music, they’re happy to stream it instead.
- iTunes also has lots of information on those users – who they are, where they live, what devices they use, how old they are, and what they like to watch and listen to. That’s the stuff that advertisers really want. But that’s not the holy grail.
- iTunes has a credit card on file for all those users. Because they buy songs, video and apps from the ITunes store already. So if you are an advertiser, and you are selling something online, how would you like to sell it in Apple’s store, where users can purchase it with just one click? Sure, you’ll pay them something for that, but it’ll be worth it because it makes it so easy for the customer.
That’s how I think Apple could revolutionize mobile ad monetization…