The question cannot be avoided and it is one that every digital publisher faces every quarter following the reports of quarterly earnings: how can the company succeed with mobile ad monetization?
Unfortunately, in the world of digital publishing, no clear lines have been defined in terms of how a mobile ad can be monetized with predictable success. A formula has yet to be identified in which a company can follow and have marketing success each time the technique is implemented. In the first half of 2015, it was extremely difficult for companies, particularly those in the sector of digital publishing, to make money with ads.
The first six months witnessed a huge shift from quarter one to quarter two, where there as an 80% percent boost that dropped to one just over 21% in the second quarter. This is all while giants in the digital world, like Facebook and Google, are consuming all the digital space for advertising that they possibly can get for redistribution.
With consumers turning their favors toward the use of digital device instead of relying so heavily on desktop applications, means that the digital space one can use for advertising is getting smaller by the minute. Fewer ads can appear on the screens of small mobile devices. Thus, the precious mobile space for advertisements, the digital real estate in the mobile arena, remains less expensive than the marketing for the Web.
During the next quarter, publishers will need to give consideration to the growing mobile use trend and how it affects ad monetization. The cross-device impact is one that will have an influence over budgets, planning, and device value along the purchase path. Bear in mind that even in the face of the dip this past quarter, there is still a considerable deal of promise for the digital publishing industry: Next year more growth in the digital ad sector is clearly anticipated, with an anticipated increase of as much as 25 percent.
The best way at this time with no clear path to increase revenue through ads is to cut costs in order to keep the bottom line in shape. Doing so will give the digital publishing industry time to find a clear path to increased revenue through monetized ads. It is time to tighten the reins on costs until revenues from ads demonstrate a steady increase.