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#MWC16: The „Mobile Gap“ threatens publishers

One topic dominated the Mobile World Congress in 2016: Mobile Disruption. There was hardly any discussion without mentioning the heavy transformation currently happening with the shift in user habits from desktops to mobile devices. This development especially affects publishers as their return on media investment is dropping.

Sharp Increase of Mobile Use

During the panel discussion “News & Content on Mobile: New Trends in Consumer Consumption“, it became obvious that publishers and advertisers are severely affected by the mobile disruption. Jimmy Mayman, President of Content & Consumer Brands at AOL, explained that already 70 percent of the visitors visited AOL webpages (i.a. Huffington Post, TechCrunch, Engadget) via mobile devices. Allie Sisson, Vice President Emerging Products at Condé Nast (i.a. GQ, Vogue, Wired), added that she was sure about one thing: Due to the rising mobile use, 2016 will be the most exciting year for mobile content. Overall, the mobile use has surpassed the desktop use long ago. Although, publishers give their best to create a spirit of optimism, there is no reason to celebrate. Still, the desktop use generates more ad revenue than the mobile use does. In concrete terms: their ad revenue will drop with the shift to mobile devices.

Reasons for the „Mobile gap”

The phenomenon is old and the reasons are commonly known:

  • Mobile visitors see less ads than desktop users as their display is smaller.
  • Traditional advertising methods, such as ad-banners, don’t work on mobile devices.
  • Tracking and targeting of mobile ads is more difficult.

On top of that, mobile ads annoy consumers if they’re not relevant to them. They not only annoy them but eliminate the primary goal of their visitors: the consumption of content. Since the technically supported integration of ad blockers in Apple’s iOS standard web browser, the use of ad blockers became popular. Even Android supported devices offer ad-blocking solutions.

It seems that the situation is as obvious as depressing for publishers: the mobile gap will increase and ad revenue will decrease further. Publishers need to react immediately.

How SAP XM can change that

SAP XM offers publishers the following solutions:

  • More Relevancy: SAP XM offers a pinpointed audience targeting along the complete customer journey and on all devices. It furthermore enables the intelligent use of customer data in real-time so consumers only see relevant ads.
  • More Efficiency: SAP XM cuts the supply chain in digital advertising and connects publisher and advertisers directly. This reduces the Nonvertising-quote that, according to the WFA (World Federation of Advertisers), is currently at a 60 percent high.
  • More Transparency: The real-time reporting of SAP XM offers publishers and advertisers a high transparency enabling real-time campaign management.

About the author

Social Media & Content Specialist.

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