Mobile Advertising: Meaning, Types, and Execution

Mobile advertising refers to any paid promotion delivered on smartphones and tablets. Since people spend over 58% of their online time on mobile devices, targeting them there makes business sense.

Think about your own habits; you probably check your phone dozens of times a day. That's exactly the behavior advertisers want to tap into.

Mobile advertising has shifted from being an afterthought to the main event, with $400 billion in global mobile ad spending for 2024 alone. Where attention goes, ad dollars follow.

This guide covers everything you need.

• mobile advertising definition
• how mobile advertising works
• types of mobile ad formats
• how to launch a mobile ad campaign
• cost of mobile advertising
• top mobile ad platforms

We'll also compare mobile advertising with other types of digital ads. By the end, you'll know exactly how to launch a mobile campaign that delivers results in 2025.

What is mobile advertising?

Mobile advertising is any form of advertising that shows up on mobile devices, like smartphones and tablets. This includes formats such as SMS ads, in-app banners, push notifications, and mobile video ads. These ads are tailored based on user behavior, location, and preferences to enhance relevance and engagement.

Mobile advertising is aimed at users on the go. This contrasts with general digital advertising, which reaches people on various devices.

Examples of mobile advertising include:

• App banners: Static or dynamic ads displayed within mobile applications.
• Rewarded videos: These are short clips that give users rewards for watching. They are often seen in gaming apps.
• Push notifications: These are timely ads sent straight to users' devices. They promote offers or updates.
• SMS ads: Text messages sent to users to inform them about promotions or services.

Today, people use their phones for almost everything—shopping for food, watching videos, listening to music, and playing games. Research shows we spend almost 90% of our time on mobile devices using apps. So, smart companies are making ads that fit into these apps. This way, they reach customers where they spend most of their time.

How does mobile advertising work?

Mobile advertising relies on a complex web of platforms that work together in real time. Every time you open an app, a digital auction takes place in under 100 milliseconds.

Here are the key players that make this system work:

• Mobile SDKs are features in apps that collect data from users and show winning ads.
• Supply-Side Platforms (SSPs) connect app developers to advertisers and manage the sale of ad inventory.
• Demand-Side Platforms (DSPs) help advertisers find and bid for top ad spots in apps.
• Ad Exchanges: Digital marketplaces where SSPs and DSPs meet to buy and sell ad space.

Here's how they work together in real time:

The moment you open an app, the SDK sends your profile data (age, location, interests, device) to the SSP. The SSP immediately broadcasts this opportunity to ad exchanges, which notify relevant DSPs.

Multiple advertisers then compete in a split-second auction—Nike bids $2.50 while Adidas bids $2.75. The highest bidder's ad gets shown on your screen.

This smart targeting system looks at your location, behavior, demographics, and device details. It then matches you with the most relevant ads.

Types of Mobile Advertising

Mobile advertising comes in many different formats, each designed to connect with users at specific moments during their phone usage. Here are the main types of mobile ads that brands use to reach their audiences:

• Banner Ads - Small rectangular pictures with text that show up at the top or bottom of your phone screen. They’re inexpensive for companies and don’t disrupt your tasks. But people occasionally click on them by mistake or fail to notice them entirely.
• Interstitial Ads - These ads take over your entire phone screen. You see them at important moments, such as between game levels. You have to either click on the ad or close it before you can continue, which is why some people find them annoying.
• Video Ads - Short video commercials that play on your phone, usually lasting 15 to 30 seconds. Since videos can't run in the background on phones, they hold your full attention. This makes these ads quite effective for companies.
• Playable Ads - Interactive ads that let you try a small piece of a game or app before downloading it. These ads are popular in gaming apps. You feel like you're still playing while watching them. Also, they usually last less than 60 seconds.
• Rewarded Ads - These are full-screen ads you watch to earn rewards, like extra lives in games or free premium features. Companies like these because people choose to watch them.
• Native Ads - Ads that are designed to look like regular content in the app you're using. They blend in so well that you might not notice they're ads at first. This makes people more likely to click on them without feeling annoyed.
• Rich Media Ads - These ads use animations, effects, and interactive features. They can have features like scratch banners or swipe ads. They come with cool visual effects that make them more engaging than regular ads.
• In-App Ads - Any type of advertisement that appears inside mobile apps rather than on websites. These ads include any of the types listed before. They are tailored for apps and can also appear in app stories. This design helps create a better experience for users.

Each mobile ad type serves different purposes. You can combine them to maximize reach, engagement, and conversions in mobile ads.

What is the cost of mobile advertising?

Mobile advertising costs vary widely based on the format, targeting, and platform. Common pricing models include:

• Cost Per Mille (CPM)
• Cost Per Click (CPC)
• Cost Per Action (CPA)

The actual cost of mobile advertising can vary significantly. It may be a few cents for each click or several dollars for each install or action.

Benefits of Mobile Advertising

Mobile advertising offers businesses powerful advantages that traditional advertising methods simply can't match. Here are the key benefits that make mobile advertising so effective:

• Reach customers anytime, anywhere: Mobile ads connect with people wherever they are. Currently, 61.21% of internet traffic comes from mobile devices. This allows your ad to reach someone within seconds of being published since most people carry their phones and check them frequently.
• Target the right people: Companies can use customer data to show ads to groups that are likely to buy their products. This creates messages that connect with ideal customers. As a result, people are more likely to click and buy.
• Connect personally with customers: Location tracking helps businesses send personalized ads. For example, a restaurant can offer lunch specials to someone nearby. This personal approach builds stronger customer relationships.
• Ensure a consistent brand experience: Mobile ads share the same message across all platforms. So, whether someone views the ad on their phone, checks the website, or visits the store, they receive a unified experience. This consistency builds trust and customer satisfaction.
• Easy sharing boosts exposure - Great mobile ads can be shared easily on social media. They might go viral, reaching thousands of new people. This gives the company free exposure.

These benefits of mobile advertising make it an essential tool for modern businesses to connect more effectively with their customers.

Disadvantages of Mobile Advertising

Mobile advertising has great benefits, but it also brings challenges. Businesses need to recognize and handle these hurdles. Here are the main disadvantages to consider:

• Bad experiences spread fast: A single bad or offensive ad can spread quickly on social media. This can harm a company's reputation as people share their negative experiences.
• Speed can lead to mistakes: Publishing ads too fast can make companies hurry. This rush often leads to spelling mistakes, wrong details, or designs that aren’t up to par before a proper review.
• Limited space creates confusion: Mobile ads are small and short, giving companies only a few words to explain their product. This can cause customers to make wrong assumptions about what is being offered.
• Data fails to reveal intent: Mobile advertising shows interaction data, but it cannot explain why someone clicked on an ad. High click rates might just mean accidental clicks rather than genuine interest.
• Privacy changes, like Apple’s App Tracking Transparency (ATT), and stricter opt-in rules mean you have less user data to use.

Knowing these downsides helps businesses build better mobile ads and steer clear of common mistakes.

How to Run a Mobile Advertising Campaign?

To run a successful mobile ad campaign, start by setting clear goals for yourself. Identify who your target audience is and select ad formats and platforms that work well for them. Don't forget to make your content mobile-friendly. As you run your campaign, keep a close eye on its performance and make adjustments based on the data you collect.

Here's a detailed breakdown:

1. Define Campaign Objectives and Success Metrics. Start by setting clear goals. Decide what you want to achieve, like app downloads, website traffic, or brand awareness. Choose Key Performance Indicators (KPIs) to track your progress. You can use measures like

• click-through rates
• conversion rates
• cost per download

2. Identify Your Target Audience. Research your audience's demographics, interests, and mobile usage habits. Use this information to create specific audience segments that are most likely to respond to your ads. Better targeting leads to better results.

3. Choose Platforms and Ad Formats. Pick ad platforms where your audience hangs out, like social media or gaming sites. Pick ad formats that match your goals:

• Banner ads for brand awareness.
• Video ads for engagement
• Native ads for a seamless experience
• Interactive ads for app promotion

You can use a platform like Blockchain-Ads for your mobile ad campaign. This advertising network helps businesses run mobile ad campaigns. Advertisers from many industries can create performance-driven ads in these formats.

4. Design mobile-optimized ads. Make sure they load quickly and have clear text. Test different versions to see what works best. Utilize high-quality visuals. Add subtitles to your videos. Also, include clear call-to-action buttons that guide users on what to do next.

5. Set Budget and Bidding Strategy: Determine your campaign budget and choose how you want to pay for ads, such as per click or per download. Consider starting small to test what works before increasing your spending.

6. Launch and Track Performance: Launch your campaign and track your KPIs regularly. Use the data to make adjustments to your targeting, ad designs, or budget to improve results over time.

Also, here are some advanced campaign tips for better results:

• Deep linking: Use deep links to direct users to specific in-app pages after they click on an ad. 
• Personalized messaging: Customize your ads for different audience segments. This makes your messages more relevant. 
• Remarketing: Show ads to users who have previously interacted with your app or website. 

These techniques can significantly improve your campaign's effectiveness.

Using this method will help you create mobile ads that connect with your audience and meet your business goals.

What metrics are used to measure mobile ad performance?

The key metrics depend on what you’re chasing, but a few show up in every serious campaign.

• CTR (Click-through Rate) tells you if your ad is getting attention.
• CPI or CPA measures cost per result, installs, sign-ups, and deposits.
• ROAS (Return on Ad Spend) tells you what you are making back.
• Retention Rate and LTV (Lifetime Value) help you understand the long-term impact.

Connect Blockchain-Ads to tools like Google Analytics, AppsFlyer, or Adjust. This boosts your attribution efforts, allowing you to track users beyond the click.

What are the top mobile advertising platforms?

There’s no one-size-fits-all ad platform. Each has its strengths depending on what you're promoting, whether apps, games, crypto tools, or eCommerce offers. Here are the key players:

• Google Ads (Universal App Campaigns)
• Meta Ads (Facebook/Instagram Mobile Ads)
• Blockchain-Ads
• Unity Ads

Choosing the right platform depends on your campaign goals, target audience, and the type of mobile advertising you want to run. Let's expand on each platform.

Google Ads (Universal App Campaigns)

Universal App Campaigns help you rapidly boost app installs across all Google platforms. Your ads will automatically run on Search, the Play Store, YouTube, Gmail, and Display, with no setup required.

Meta Ads (Facebook/Instagram Mobile Ads)

Meta Ads are built for mobile. Most placements, stories, reels, and in-feed videos are native to the phone. That makes them ideal for mobile-first brands in iGaming, fintech, and crypto.

Blockchain-Ads

Blockchain-Ads is the top mobile ad platform for mainstream and regulated industries. Blockchain-Ads helps advertisers find their perfect audience online. This is based on interests, behaviors, and investing habits. 

Unity Ads

Unity Ads is built for game developers who need to monetize or cross-promote across titles. It fits right into mobile gameplay. You get rewarded videos, interstitials, and playables that match the game loop.

How Does Mobile Advertising Compare to Other Ad Channels?

Mobile advertising gives you reach and precision in ways other channels can’t but it’s not always the best fit. Let’s compare mobile advertising to other ad channels to help you decide which one best fits your campaign. Here’s a TL;DR of the major advertising types we’ll compare:

• Search advertising
• Display advertising
• Native advertising
• Paid social advertising

You can find a complete list of digital advertising types in our special guide on the topic for a better understanding.

Search Advertising vs. Mobile Advertising

Search and mobile ads are both types of online advertising, but they differ in terms of targeting. Search ads show up on search engine results pages (SERPs) when users look for specific keywords. Mobile ads are made for smaller screens. They show up on websites and in apps on mobile devices.

When someone searches "best pizza near me," they're ready to buy—search ads work perfectly here. Mobile ads appear while people use apps, play games, or scroll through content. This catches them when they are relaxed and open to finding something new.

Display Advertising vs. Mobile Advertising

Display ads and mobile ads are both forms of online advertising, but they differ in their delivery and target audience. Display ads are visuals seen on websites and apps. Mobile ads, on the other hand, are made for mobile devices like smartphones and tablets. In essence, mobile ads are a subset of display ads tailored for smaller screens.

Mobile Advertising vs. Native Advertising

Mobile advertising and native advertising share a lot of similarities. Many mobile ads use native formats to fit into app interfaces. The key difference is focus. Native advertising aims to match content style on any platform. In contrast, mobile advertising focuses on phone users, no matter whether the ads blend in or not.

Mobile Advertising vs Paid Social Advertising

Mobile ads and paid social ads overlap a lot because most social media is used on mobile devices. The key difference is scope. Paid social advertising works on specific platforms like Facebook, Instagram, or TikTok. Mobile advertising, on the other hand, reaches users across the whole mobile ecosystem. This includes apps, games, mobile websites, and social platforms together.

Paid social lets you tap into detailed social data and engagement trends. However, it also restricts you to each platform's rules, formats, and audience targeting choices. Mobile advertising reaches a wider audience across different apps. It also allows for more precise targeting. For example, you can directly target crypto wallet users or mobile gamers. This means you don’t have to rely on social platform algorithms.

Is mobile advertising the same as mobile marketing?

No, mobile advertising and mobile marketing are not the same. Mobile advertising falls under mobile marketing. It includes paid campaigns, banner ads, playable videos, and in-app ads. These aim to drive quick actions: clicks, downloads, or sign-ups.

Mobile marketing includes mobile ads and other strategies to engage mobile users, whether they are paid or free. This includes SMS offers, email workflows, social media marketing, and in-app campaigns. These efforts aim to boost retention and lifetime value.

For example:

• A click-to-install ad on TikTok is advertising.
• A welcome email after signup is marketing.
• A push notification with a discount is marketing but becomes advertising if purchased as inventory.
• A tutorial pop-up that guides users within the app is part of an app UX campaign.

Is mobile advertising the same as in-app advertising?

No, mobile advertising is not the same as in-app advertising. Mobile advertising refers to all advertising done on mobile devices. In-app advertising is a specific type of mobile advertising.

Mobile advertising includes:

• In-app advertising (ads within mobile apps)
• Mobile web advertising (ads on mobile websites)
• SMS/MMS marketing
• Push notifications
• Mobile video advertising across all platforms.

In-app advertising specifically refers to:

• Banner ads within apps
• Interstitial ads (full-screen ads between app content)
• Rewarded video ads
• Native ads are integrated into app content.
• Playable ads (interactive mini-games)

It’s important to understand the difference. User behavior, targeting options, ad formats, and performance metrics can vary a lot between in-app and mobile web ads. 

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Is Mobile Advertising Worth It for Your Brand?

Yes, mobile advertising can be a worthwhile investment for your brand, but it depends on various factors. Most internet traffic comes from mobile devices. This means there are big opportunities for reach and engagement. 

Success relies on your goal, ad format, and how well you include mobile in your marketing strategy.

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