Mobile Advertising and the Recession – Part 1

So how has mobile advertising affected during the times of a tough global recession?. Here are a few of our thoughts in Part 1 of 2 posts.

a) Mobile advertising is actually seeing more deals – This is simply because more and more mainstream advertisers globally are betting on newer media (like mobile) to enhance the effectiveness of their campaigns and reduce costs

b) Global Mobile Traffic has only been growing – There has been no significant change in user behavior or traffic patterns due to mobile advertising except for a few positive signs like smart phone traffic in the past few months. iPhone, iPod etc have been contributing to more mobile traffic thanks to their ease of use in select markets.

c) Some ad networks have reduced their bid prices – While we at ZestADZ have not reduced the prices, some dominant players have reduced the bid prices of key mobile ad markets around the world.

d) Recession has begun pinching unsustainable deals – There are several ad networks that are now feeling the pinch of signing up CPM deals with publishers which are now languishing without enough ad inventory or inventory that is generating negative gross margins. This is an important lesson to learn in any industry which is in its early days – you can’t buy your way through.

To be continued…