As illustrated recently and dramatically in the Facebook S1, no one has quote figured out mobile advertising. Google and Apple have been trying, and Facebook and Linkedin are about to enter. Sometimes without good ideas to solve the actual problem, which in this case, is that there is no clear magic yet to make the advertising effective, the resort is to price-cutting. Both Google and Apple have just cut prices on their mobile advertising inventory to spur usage of their mobile advertising platforms in advance of the Facebook launch. Given both companies have been working on the issue for two years, this latest move is an indication that this problem still has the big boys stumped As the FT notes:
However, with many brands still unsure how to tailor their messaging for the small screen, available ad slots in apps and on mobile websites are often left unsold. As supply outstrips demand, the rates which mobile platforms are able to charge for an ad still lags behind the desktop web, a contributory factor in Google’s earnings disappointment last month.
To counter these issues, Google and Apple, as well as some independent mobile ad networks, are lowering their prices to lure more first-time advertisers on to the platform, hoping the incentive will lift overall volumes. “These changes will definitely make prices more attractive in the short term,” said Thomas Schultz, international chief executive at Somo, a mobile marketing agency. “We’re seeing the two big players go head-to-head to try to disrupt the market and secure those budgets.”
Their efforts come as Facebook plans to unveil advertising on its mobile apps in the run-up to its initial public offering. In addition, LinkedIn’s chief executive, Jeff Weiner, said last week that the professional network plans to run some tests for some of its marketing services on mobile, where its page views have increased by 350 per cent in the last year.
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