AdTech

AdTech Gold Rush

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Picks and Shovels: The Mobile Gold Rush is On

During the gold rush it was the people selling picks and shovels who made the money, not the people mining for gold. Today, developers are the miners and adTech companies are the merchants fueling the fire – at least that was the point made at the recent semi-annual M1 Summit in New York City.

Picks and Shovels AdTech Gold Rush

Mobile Application Monetization

In this modern gold rush, adTech companies and platforms are essentially the ones selling the picks and shovels. Today however, they’re actually adding value since it’s impossible for developers to keep pace with the shifts and changes in the marketing industry. In the average developer workflow, cranking out code isn’t so much of a challenge as is user retention.

In order to successfully monetize their apps, there’s only four options for developers have at their disposal:

  1. Sell an app or service
  2. Offer a paid subscription
  3. In app purchases
  4. Advertising

In order for companies to really stand out from the competition, they need their product teams to successfully keep the communication going between the marketing and engineering teams.

Connected Devices

When it comes to the internet of things (IoT) the biggest challenge for app developers and adTech companies is that there needs to be a way to connect devices with each other. Until then, any apps which are developed aren’t going to be used to their potential.

In order to be successful in the future, AdTech companies need to become mobile first, since those are the devices where data is being consolidated. Developers need to realize that they can’t develop for the masses – they need to put the customer front and center. The biggest takeaway from the conference is that with a mobile first strategy, developers need to focus on how individual users interact with the app.

FTC Native Advertising Guidelines

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Are online ads dead? Probably not

Have we reached the end of free content on the web? As ad blockers gain continue to gain traction, many publishers have been bracing for the worst as their primary source of revenue is cut off. It sounds like a new challenge, however if you look back to the dot com boom of the late 90’s, you’ll see that many online companies have survived by embracing change and focusing on solid business principals.

End of Traditional Internet AdvertisingWhile publishers don’t necessarily have as many revenue options as other online businesses, this is just another example of digital Darwinism where the right planning will help you stand out from the crowd.

Understandably, having to overhaul your revenue models isn’t something you can take lightly. Aside from big data (a vast topic which is beyond the scope of this article), native advertising (paid content which matches the look and feel of the website) is becoming the go-to solution for maintaining profitability.

It appears to be a low hanging fruit, but it’s not something which can be implemented overnight. As the advertisements are designed to blend into the existing content, one of the biggest challenges is maintaining the boundaries between paid and unpaid content. If you’re considering using native advertising, you’ll want to review the Federal Trade Commission (FTC) legal guidelines on the topic.

Going beyond the buzzwords, the Interactive Adverting Bureau’s (IAB) launched their LEAN ads (light, encrypted, ad choice supported, non-invasive ads) program to supplement existing advertising standards. The LEAN ads standards are focused around technical improvements such as:

  • Frequency capping on retargeting
  • Ensuring ad targeting occurs only before, rather than after a purchase occurs
  • Limitations on data usage
  • Improved security and privacy protections

Rather than trying to defeat ad blockers or force users into disabling them, you need to focus on adding value to the user. Following established UX principles, building user trust, and adding value are the three key components of any successful advertising strategy.