Week in Review – What happened in mobile advertising this week

The Interactive Advertising Bureau has been on a bit of a research roll this week. Let’s start with their latest forecast on mobile ad revenues which reached €63 billion in 2016 – a jump of 60.5% from 2015 (€39 billion). Mobile display was largely responsible for the boost growing to 64.1%.
Mobile advertisers may have gotten it wrong. According to a survey by the IAB, 64% of Australians find that advertising quantities on their mobile devices have increased in 2016 compared to the year before. 46% said that ads were now more intrusive than before.
In addition, the IAB this week updated its Mobile Rich Media Ad Interface Definitions (MRAID) specifications which offer guidance on in-app advertising for rich media ad experiences. The latest edition includes expansion, resising, native features, as well as device orientation and full-screen interstitial ad support.
In-app payments are noting significant success rates in Germany, according to the BIU. Micropayments on apps grew 17% during 2016. The same is true for the UK, US and China where Gartner found that app users are spending 24% more on in-app purchases than apps themselves.
Mobile and mobile video have boosted local media ad spend in the US, predicted to reach $174 billion by 2021, according to the latest BIA/Kelsey forecast.

Facebook this week revealed a turning point for its Messenger app by integrating adverts in between chat threads. The company confirmed that it had run successful testing of the format in Australia and Thailand. The move could substantially boost Facebook ad revenues at a time when it has forecast slowed growth.
Meanwhile, Pandora has partnered with Foursquare to boost monitoring of foot traffic from its ads. It will be integrating Foursquare’s Attribution service to combine data from store visits with ad campaigns.

App fraud continues to be on everyone’s mind particularly with Anura releasing findings that it has identified 1,300 apps in the Google Play store which contain a code that can turn engage with mobile ads on Android phones even when devices are in sleep mode. That’s an issue which will require attention quickly.
Indeed, Carmen Lumina, Managing Director at Bitterstrawberry, told us this week that bots and fraudulent traffic were an ongoing issue which would require substantial industry cooperation. Although anti-fraud systems have been trying to target fraud with logs, these cannot capture the whole user behaviour, which is where Bitterstawberry comes in.

360 Video and Virtual Reality advertising are likely to be reigning in a new era in mobile advertising. We’ve spoken with OmniVirt’s Michael Rucker this week to find out more about the opportunities, impact and measurement options.
US mCommerce sales on smartphones are forecast to increase 65% in 2017, up from 58% in 2016. However, mobile is still more commonly used as a research tool instead of a purchasing channel. In conversation with QuanticMind’s Chaitanya Chandrasekar we’ve discussed the webrooming trend and what advertisers can do to drive sales on mobile devices.