With the typical American spending more than 5 hours a day on their phone, it’s easy to see why mobile advertising has emerged as one of the most effective advertising channels today. About 96% of Americans own a cell phone, and the vast majority of those people (roughly 81%) have a smartphone—meaning they’re spending a big chunk of their day scrolling social media and visiting websites via their mobile device.

If you want the most common types of mobile advertising explained to you, you’re in the right place. We’ve created this guide to help you learn more about how mobile advertising works and which types of advertising are most effective.

WHAT IS MOBILE PHONE ADVERTISING?

Mobile advertising is a form of digital advertising in which ads are specially designed for mobile devices, including smartphones, tablets, and smartwatches, and served to targeted mobile users. There are many different forms of mobile advertising, each with its own benefits.

WHAT ARE THE TYPES OF MOBILE ADVERTISING?

Mobile advertising began in 2000 when a Finnish news outlet sent the first mobile ad via SMS. However, advertising has come a long way since then, becoming far more streamlined and versatile.

So, what are four of the main types of mobile advertising today? How is the mobile platform different for ads? Which types of mobile ads should you use in your mobile advertising strategy? Here are the most popular types of mobile advertising explained:

1. NATIVE ADS

As the name suggests, these ads are made to look “native” to the media platform on which they’re published. Instagram ads are one native mobile advertising example that most consumers are familiar with. They’re well integrated into the mobile app and have the same design as the rest of the Instagram feed. In fact, many users may not even know they’re looking at an ad at first glance.

2. BANNER ADVERTISEMENTS

One of the original forms of mobile advertising, banner ads are simple display ads in which the ad appears in a long, rectangular box across the top or bottom of the page. Most banner ads are heavily image-based since there isn’t much room for long descriptions. Mobile phone users can then click on the banner ad to be directed to a page with more information. Many companies prefer this method as a way to boost brand awareness without being too disruptive.

3. INTERSTITIAL ADS

Interstitial ads appear during transition periods of phone use (like when clicking on a new screen in an app or after finishing a game). They take over the whole screen and give the brand a chance to capture the full attention of their potential customers in just a few seconds.

Interstitial ads are growing in popularity because they offer a high impression rate compared to other types of mobile ads. They are not pop-ups; they only occur on an action and are full-screen instead of being superimposed over the content. In-app ads are frequently interstitial ads.

4. VIDEO ADS

Video content has increased in popularity among marketers for the past few years, with 86% of companies using video in their marketing strategy today. Mobile video ads usually play in-app when the phone user opens or clicks a button. Though this type of mobile advertising is more expensive, it often produces an impressive return on investment. 

WHAT ARE THE ADVANTAGES OF MOBILE ADVERTISING?

Now you know the most popular types of mobile ads. But what are the advantages of mobile advertising?

This type of marketing gives companies unprecedented access to their target audience. With consumers spending so much of their time scrolling, swiping, and clicking away on their phones throughout the day, it’s an obvious choice for getting your brand in front of customers, no matter the age or demographic.

Mobile advertising also offers unique location and personalization tools that exceed the limits of traditional advertising. And truly great mobile advertising even has the potential to go viral since mobile phone users are always looking for the next great thing to share with friends and family. 

Mobile ads also typically use a programmatic purchasing method, meaning your ads are only shown to your target audience, and you only pay for those views. That makes mobile advertising especially cost-effective and easy to optimize.

WHAT ARE THE DISADVANTAGES OF MOBILE ADVERTISING?

Despite its broad reach, on-the-go targeting capabilities, and interactive ad formats, mobile advertising has a growing list of problems. For example, mobile targeting is becoming increasingly difficult as mobile manufacturers and developers like Apple and Android make it easier for mobile and app users to opt out of tracking.

Too frequently, mobile ads, like other ad types that use programmatic buying, focus on metrics that don’t tell the full story. Optimizing for click-through rates, CPMs, and cost per click doesn’t show the down-funnel conversion. If the leads are not high-quality, the impressions are wasted.

Instead, mobile ads should work in tandem with other advertising channels to drive customers through the funnel toward conversion. This way, your advertising efforts will focus on the KPIs that actually matter to you. Of course, this is only possible with precision advertising.

WHICH TYPE OF ADVERTISING IS MOST EFFECTIVE?

So, which type of advertising is most effective? The statistics speak for themselves. More than 40% of online transactions are made using a mobile device. Mobile data traffic is expected to increase, and advertising now comprises the bulk of digital ad spending. While each business and customer is different, mobile marketing should compromise a large portion of just about any marketing strategy.

CHOOSE PRECISION ADVERTISING WITH AGILITY

Mobile advertising alone will struggle to help you consistently hit your marketing goals. Mobile ads used as part of a precision advertising strategy with Agility are exponentially more effective. Merging channels, focusing on personas, and measuring the down-funnel impact of advertising efforts are key to precision advertising. Every channel is more effective when used in precision advertising.

See how precision advertising can transform your marketing efforts today. Test precision advertising.