Consumers don’t like advertising. Are we shocked by this? A recent report by YouGov concluded that of all digital advertising – mobile ads were found to be the most offensive.

Let me relate an all too often conversation that I have with people I meet …

“So Dale, what do you do?”

I tell them.

“oh, you’re the one giving me those annoying ads,” or something similar to that.

This used to bother me because I genuinely wanted to be loved for what we do – not just by our network partners, but all the way to the end consumer.

But I have recently begun to wonder what is behind the negativity towards mobile advertising. I doubt whether a Creative Director at an advertising agency such a Saatchi would be met with the same level of indignation. For some reason, consumers feel that advertising on mobile is at the extremes of bad behavior.

Not to ruin a good article by jumping to the conclusion, I predict that consumer sentiment is not going to have any long term effects on the industry. The mobile is the newest medium for advertising and therefore we are very focused on it. In addition, it is crossing further into our personal domain. However, Mobile advertising will continue to grow at the incredible rates we are seeing and consumers will continue to hate it until the next advertising medium comes along and gives us something new to hate.

Consider these factors:

• ALL content needs to be funded
• Free content is most often funded by advertising and consumers accept this without complaint on TV, print etc
• Paid versions of many apps exist and are therefore ad free
• However, 96% of apps downloaded in 2011 were free – consumers opting not to pay to avoid the ads
• Mobile advertising is effective

The last point is probably the most relevant. Response rates on mobile are far in excess of any other medium and the more dynamic (read overt (read “annoying”)) the ad, the higher the response rate. Banner ads on mobile are 6-10 times more effective than on the web.

The more dynamic ads on our network, are performing 7 – 10 times better still. Not to appear salesy, but rather to prove a point – we even have app developers earning in excess of $100 ecpm (earnings per 1000 impressions and an indicator of huge engagement levels) on some advanced ad types. If this is the effectiveness when everyone hates them (and is supposedly ignoring them) – I wonder how successful they may become when they are loved (or just indifferent).

I can’t help think what the reaction to TV ads was when they were first aired. Or now that they run 15+ minutes every hour. And still today, TV makes up 41% of global media advertising expenditure.

Are mobile ads annoying ? Perhaps.

Are they effective ? Definitely.

Are they going to face consumer backlash ? Not as long as we want to experience the variety that free content provides.

The lady doth protest too much, methinks.

I’m proud to announce that we have officially released our new Basic4Android Compatibility Library. Created in conjunction with the Basic4Android team, this new toolkit for application developers is intended to make it easier and faster to add LeadBolt’s unique monetization methods to software applications at all stages of development.

Basic4Android is a major contender in Android application development and puts the power and simplicity of the Basic language into the hands of developers in the Android market. Basic has long been the standard for ease of use in the programming field and is the basis for Microsoft Visual Basic. The Basic4Android programming platform is based on an advanced Rapid Application Development tool that makes it simple to create Android programs quickly and easily in Basic. The platform then compiles the information into a Java-compatible format to ensure seamless native integration in the Android operating system environment.

This collaboration is expected to prove advantageous to both companies. The Basic4Android development platform will gain greater visibility with developers already using LeadBolt’s monetization methods, and we will provide even better service for our clients by providing this advanced software toolkit. The Basic4Android Compatibility Library will make it easier for app developers to integrate LeadBolt’s full array of advertising and monetizing techniques into their applications, allowing them to earn more with every app they deliver.

LeadBolt publishers can download the Compatibility Library and obtain software support at http://www.basic4ppc.com forums.

As a mobile advertising pundit who lives and breathes the mobile advertising world including its demographics and growth stats, I remain confounded that more brands have not yet jumped fully into this unique opportunity to reach audiences.

Of course, there are the early adopter companies and forward thinking organizations playing in this space but I am surprised that brands have not yet leaped on board in a way that matches the audience adoption of the mobile platform.

Look at the audience stats. For example, by the end of 2011 it has been estimated that there are 1.2 billion active mobile-broadband subscriptions in the world. That’s 17 percent of the global population. What’s more, mobile-broadband subscriptions have grown 45 percent annually over the last four years and that mobile-broadband subscriptions outnumber fixed broadband subscriptions 2:1. (source ITU)

What does this mean? It means the world is going mobile and doing it fast. In a way this event is intuitively obvious. In developed countries (US, Europe) where disposable income is higher, the ‘internet anywhere’ heuristic of iPhone, iPad, android phone and tablets is so desired that these devices are now experiencing mass adoption . It’s similarly claimed that most email is now first read on a mobile device and even Facebook has ‘finally’ announced mobile is the next cornerstone of their company strategy.

In developing countries, mobile based access has again scored very highly over desktop access as wireless or tower based infrastructure is easier to install and maintain. Similarly actual users in developing countries are recognizing the obvious benefits and selecting a mobile platform with all it’s convenience as well.

So where do the brands fit? According to Gartner, (June 2011) mobile spending will reach 4% of global advertising budget by 2015. That’s going to be way behind the global population and their embracement of mobile smart phones.

When you factor in that mobile based advertising has better targeting, higher click through rates, measure-able call to action plus you can reach the right audience with a much higher degree of accuracy than other online and even offline sources, you like me will wonder what is going on.

I suspect that the mobile advertising opportunity and its brilliance are being kept a deliberate secret. It’s locked up in those archaic advertising agency vaults so they can continue to peddle methods they know such as print media or expensive and vaguely quantifiable TV ads.

Have no fear; adverting executives must go where the audience is. Print media ad spend is dramatically declining, TV is becoming segmented as more users watch on line while Apple and Google line up the next technological battleground or marvel for 2012.

One surety is that mobile adoption as the principle engagement technology of the mass market will continue to increase and brands will have to embrace the platform. Savvy brand marketers will already be doing so.  Organizations that don’t feature mobile in their strategy will be left without a voice.

If you are a mobile publisher or mobile advertiser reading the industry trends going into 2012 you are going to be overwhelmed by the plethora of opinions and predictions. There’s no doubt that there is a lot of good ‘intel’ in these blogs posts and analysis but as one analyst put it

“At this point, the mobile advertising market is so saturated that advertisers are faced with too many options for where and from who and how to buy ad space.”

That’s right on the money, but as I read this particular blog post further the mobile advertising options for an advertiser and publisher just got bigger and more confusing.

Add to this scenario, the ongoing technological inventiveness and new things from the range of organizations in this space. Consider that they will apply a suitable three letter branding to each of their thoughts and new innovations.

What do you get? Well you are likely to be facing a year of M&A, RTB and lots of joy from IAB and MMA (see footnote for translations).

At which point, I asked myself did this solve the initial problem? How does all this future thinking help some-one decide where to get or place their mobile advertising.

Thankfully we can turn to the ideas from cooler heads. Organizations have been wrestling with the task of separating fact from speculation and hype as long as there have been sales people and analysts.

And importantly, the finer minds in business management have well accepted that achieving success in an endeavor, getting to the heart of an issue is nearly always aligned with setting and measuring some sort of key performance indicator (KPI).

The problem is that in the rush to proclaim the new mobile advertising future in the worldwide blog-sphere, these fundamentals are overlooked. When the internet is our reference guide to all things new – what’s new is often mistaken for what’s right.

And so the winners? When the dust settles by the middle of 2012, the winners will no doubt be those advertisers and publishers who understand how to apply the fundamentals and proven KPIs (CTR, CPC, ECPM) and the ad networks that deliver high performance results to these standards.

Notes: M&A – mergers and acquisitions, RTB – real time bidding, IAB – Interactive Advertising Bureau, MMA – mobile marketing association, CPC – cost per click, ECPM – effective cost per mille (1000 impressions), CTR – click through rate.

We are proud to announce the release of our latest high performance ad format, the LeadBolt “App Icon”. This new mobile advertising format allows Android app developers to monetize their applications in a unique way outside of the app experience so they improve the consumer experience when the app is in use, and earn advertising revenue even when it is not.

With the release of App Icon, we provide end users with a great value offering wrapped in a non-intrusive user experience while at the same time delivering another very effective way for developers to monetize their apps.

App Icon is automatically installed on the home page of the end user and can be clicked at any time to access and install the latest and greatest apps. By putting the choice into the consumer’s hands, we have improved the customer experience while ensuring app developers effectively monetize their product. The App Icon ad format can be easily integrated into new and existing applications through a simple to implement SDK function call.

LeadBolt has built its reputation on providing app developers with the widest range of high performing ad types available in the industry. The addition of this leading edge format further reinforces our position as the leading mobile and web advertising company in the industry.

For more information and a short video of the new ad type, visit http://www.leadboltapps.com/appicon