Mobile Users do not Click on Ads
August 19, 2013
Woe be to Internet companies for they are not making money off mobile ads. Here is something that looking back makes it predictable to see: “Study: Users Don’t Click On Online Ads” from the Telegraph. According to the article, Microsoft, Facebook, Google, and Intel are losing money in small screen advertising. Social media giants such as Twitter and Instagram are more successful, but they do not rely on advertising on a money generating. Apple and Samsung are turning a profit as well, but it is hard to compare hardware to digital Web sites.
Branding is difficult on small screens, because the advertising algorithms put ads on people’s screens that are irrelevant or downright offensive to the user. Microsoft is having trouble, because they focused their energies on tablets and an OS built specifically for it. Windows 8 is hardly synonymous with tablets and poor user response does not help.
Google will make a come back:
“The search giant’s results this week demonstrated two key things: it continues to be a dominant force on the web, and it has no serious rivals. But even it has been taken by surprise on mobile phones: it built the operating system that now accounts for the majority of all devices, and claimed that doing so would drive traffic to Google. So far so good, but on mobile Google is struggling to find a way to make the adverts that pay its wages attractive enough for users to click on.”
Google relies on a simplistic approach to its products—free of advertising. As their product line begins to include driverless cars and more the money will come. Yet another turning point for companies dependent online advertising-time to focus on something else.
Whitney Grace, August 19, 2013
Sponsored by ArnoldIT.com, developer of Beyond Search
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