A look at how last week’s news affects mobile publishers
It seems like each week mobile is moving past its competitors in one vertical or the other. Mobile is pushing digital advertising past television advertising, and now it’s ready to pass fixed broadband as the main source of data consumption. According to PriceWaterhouseCoopers, mobile will make up 38 percent of all digital data consumption by 2021, with broadband coming in at only 27 percent, which is four points lower than it is today. On top of that, mobile advertising is expected to account for 74.4 percent of all online advertising by 2021, a huge increase over the lead it enjoys today. The era of mobile is happening right before our eyes.
For a while now, publishers have been begging Facebook for the ability to let users sign up for subscriptions from within the social network, and it looks like they’re now getting their wish. The feature is expected to be available by the end of 2017, and should help monetization efforts for online publications using a paywall. The feature will be available on Instant Articles, and could allow users to read some articles before eventually getting a subscription. According to the Wall Street Journal, users will get 10 free articles before they’re asked to pay up, which matches the number of free New York Times and Washington Post articles users have access to.
People are constantly looking down at their phones, but just how often? A new study by the IAB says two-thirds of mobile phone users look at their device at least once every 30 minutes, while 20 percent of users look at their screen once every five minutes. According to the same report, titled “Always On – A Global Perspective of Mobile Consumer Experience,” 90 percent of users can recall seeing an advertisement on the mobile web within the first few days after seeing it. That’s compared to 86 percent on a mobile app. Anna Bager, senior vice president and general manager, mobile and video, at IAB claims that the “findings confirm the fact that omnipresent mobile usage is a worldwide phenomenon, which creates a tremendous opportunity for marketers.”
Now that Verizon’s acquisition of Yahoo’s Internet assets is complete, it’s time to start thinking about what this means for the digital advertising industry. Verizon is combining AOL and Yahoo into one company named Oath. Right now Google and Facebook are the undisputed champions of the space, with $73.8 billion and $36.3 billion in ad revenue, respectively. Oath will start out in a different weight class, with its expected revenue hovering under $5 billion this year. Verizon has stated a goal of $20 billion in revenue by 2020, which is still much lower than the two at the top. The advantage Verizon has over the other two is the ability to combine user data from Oath properties, along with the data from its wireless subscribers, to provide a better avenue for targeting mobile devices.