In the article "Will Mobile's Massive Growth Ever Equal Real Revenue?" Adage reports that mobile advertising is just not making money for vendors. Earning just $.75 CPM for mobile versus $3.50 CPM for traditional banner ads. The ads being served are of poor quality and are annoying to most users due to a lack of adaptation from the traditional banner ad approach. Some firms are searching for new ways to tackle this issue:
"As a result, companies such as Gawker Media and Atlantic Media, owner of the The Atlantic magazine and the new business site Quartz, are banking on building their mobile businesses around branded content more than advertising. Both companies are selling small ads on some mobile properties -- either directly or through a network -- but each have sites where the only monetization is coming via brand-sponsored posts, according to business executives at the companies."
Players like AOL and the the New York Times are looking to proactively change their mobile strategies through pay-per-view and various e-commerce schemes. However, the exciting model will most likely come from advertising that takes advantage of being on a mobile device rather than overcome the challenge by simply doing more of the same.
PlaceIQ is using geo-data to deliver geo-contextually relevant ads, and Session M is actively rewarding users for viewing advertising content. At the end of the day, mobile devices are a disruptive technology and more novel approaches to advertising will be cropping up in the next few years. I suspect that mobile advertising will become as much of a service to the customer as a means to advertise to them, think behavioral advertising on steroids where the customer chooses which ads are relevant to them based on the behaviors they wish to share with advertisers.
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