Mobile advertising is becoming an integral part of advertising strategies due to the fact that it can conveniently reach consumers right in the palm of their hands. This year, it seems the best way to reach users are through apps as they are being downloaded everyday for almost any occasion, opening the door to integrate mobile advertising more fluidly in a campaign while search, shop and share tools, such as QR codes, continue to play a major role.
With 95% of mobile users downloading and using free apps, worldwide mobile app revenue will triple to $15.1 billion and downloads will more than double to 17.7 billion this year alone. While it is estimated that 51% of the US will have smart phones by the end of 2011, the popularity of tablets are growing as well with speculation that 50 million Americans will own a tablet computer in the next year. To keep the increasing number of tablet and smart phone users engaged through apps, iAds – a new form of mobile advertising that explores the capabilities of smart phones and tablets through rich media – is needed. Even more so when considering that mobile app revenue, especially for free apps, is made by cost-per-click mobile ads. While CPC mobile ads are a great way to advertise, CPC ad dollars are often wasted because users frequently click or tap the ads by mistake. In fact, a survey conducted by Pontiflex and Harris Interactive found that 47% of mobile app users click ads unintentionally with 61% being 18-34 year olds – the most active group of mobile users. However, the survey also found the solution that 71% of app users prefer in-app ads that don’t take them out of the app.



