14 DAY TRIAL // Companies must find different ways to monetize ads on mobile devices, Tejal Patel, director of consumer engagement at Microsoft, has said at a recent event, as the existing formats are less effective and users are no longer willing to give up on their privacy.
Banner ads will disappear in around 3 years, Patel continued at the Advertising Week Europe in London, pointing out that ads integrated into social media feeds are the ones that will be the most successful in the next decade.
“Millennials... are likely to sacrifice their privacy. However, they're not going to do that for banners. Why would you? There has to be a value exchange there: good contextually relevant content,” she is quoted as saying by BI. “I think this whole word 'banner' shouldn't exist, and probably won't exist in three or four years, maybe less than that.”
In-app advertising
Furthermore, Patel has explained that in-app advertising is also losing ground, as mobile phone customers only use a small number of apps every day, despite the fact that everyone installs many more on their devices.
“Thinking about it from a consumer point of view, I'm really unimpressed with in-app ads. I can’t believe it. It feels like it is from the beginning of the digital era still. Someone please show me something really creative in in-app. I haven't seen it yet,” she continues. “What’s the stat? People might download 100 apps a year, but they're only using four or five. So let’s not get too distracted with in-app (advertising).”
Without a doubt, delivering effective ads on mobile devices is quite a challenge, especially because companies need to do that without impacting users’ experience in any way. This is, in turn, very difficult, given the available screen space, so yes, new advertising strategies that can be more effective on mobile devices need to be implemented.