Contextual Advertising - Direct from Content to Mobile Smartphone Consumer

Why will Contextual Advertising is the Next Seismic Shift?

Advertising. All business’s need to advertise in one form or another in order to maintain and grow new business.There are many types of advertising: TV, Radio, Social Media, Magazine, Print, and Online. The world of the 1960’s advertising agency’s as portrayed so romantically on Television does not exist anymore in real life. Gone are the days of agency’s creatives pitching wild ideas and campaigns for their hungry clients. Today’s advertisers want measurable results, interactivity, and improved ROI with their advertising campaigns, not just creative ideas.

The same mindset of advertising executives that existed in the 1960’s exists today Brand, Brand, and more Brand. As more and more advertising budgets have gravitated to online mediums, companies have looked for more interactivity in their advertising campaigns. But even still, the direct connectivity with their customers and mCommerce have still been illusive.

With B2M (Business to Mobile) Advertising, the next seismic shift in advertising is enabling the direct connectivity with customers and their Smartphones. As customers eyeballs have shifted from Film, Television, Cable, Print and Magazine advertising; they have moved to the 4″ inch diagonal screen of Smartphones and Mobile. Progressive advertising company’s and agency’s have been experimenting with interactive mobile advertising successfully, seeking out new ways to bring in these mobile customers and mCommerce to their business; increasing their bottom line.

What has been completely missing in these campaigns has been the “Contextual Advertising” needed to connect to these customers interactively through their Smartphone, as customers have the immediate desire to buy the advertiser’s product not later, but ”right now”; via their Mobile Smartphones. When a consumer sees a TV Commercial or Radio Ad where a product being offered, they typically have to go to the store or search for it online and buy it. Advertisers are loosing customers that are interested in buying their products and need a more contextual connection with their advertising, content and brand message.


One of the new technological ways retail stores have been advertising this holiday season is to send direct promotional offers to customers via their smartphones. If a customer visits a store, has a Smartphone, and within a certain distance to the store, their phone will receive special offers as you enter the store. These offers are limited and are based on the smart phone being in close proximity and distance to the store. Typically the distance is less than 30 feet.

This year, new broader sensor capabilities will enable content owners the ability to advertise and connect directly with their Mobile Commerce Consumers and Smart Phone users. More targeting capabilities will enable more content owners to advertise contextually and directly to consumers, enabling better ways to monetize their content.

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According to Forbes, The $600 Billion Advertising Industry is growing at a 5% annual rate and TV comprises 40% of the industry. According to eMarketer Mobile Advertising is the key driver of growth with $64.25 worldwide spend spent in 2015, and increase of over 40% from 2014. When you add the growing online advertising market in Search, Display, and Social Media, things don’t look to good. The biggest loser in this competitive fight for advertising dollars are the TV Networks and Print Media who are selling advertising.

Gartner estimates that the Internet of Things (IoT) will support total services spending of $235 billion in 2016, up 22 percent from 2015. Services are dominated by the professional category (in which businesses contract with external providers in order to design, install and operate IoT systems), however connectivity services (through communications service providers) and consumer services will grow at a faster pace.

What’s behind this Disruptive Advertising Shift to the Internet of Things?

As advertisers have embraced the power of programmatic advertising in both Digital and Mobile, the advertisers have become accustom to measurable and definable ROI with advertising campaigns and media budgets. Companies with large Television advertising budgets are use to getting “Brand Lift” from spending millions of dollars on TV and Radio ads. But when you ask them how much did it bring to the bottom line, their answer is not always clear. They tell you “The results were great, but I can’t tell you how much revenue it brought in. This is the way we’ve always done it”. Programmatic Advertising ushered in a world where you could dial in the exact consumer, at the exact time and advertise “Contextually” to when that customer was most likely to purchase your product, service or download your app. The Television and Radio Advertisers have yet to be able to contextually connect interactively with their highly desired consumers the way Digital and Mobile have.

This is about to change. Television and Radio Advertising sales departments are spending millions of dollars in getting BIG DATA analytics to understand more about their viewers of their shows and commercials. The disconnect is that these Fortune 500 CMO’s and marketers don’t have the interactive connectivity to their consumers that Digtial Media and Mobile do. They don’t have that interactive “Call to Action”.

The Internet of Things is providing that bridge of interactivity that Television and Radio Advertiser are seeking and are so direly missing. As we will see in the next 5 years, advertising will be delivered to the consumer when they see it, when they want it and they will be able able to buy (a Digital “Call to Action”) interactively, whether it’s Television, Radio, Digital Media or Mobile. Next Generation Advertising campaigns are now testing, integrating, and embedded sensors and BIG DATA Analytics into Television and Radio advertising, connecting that content from the broadcast channel to the mobile smartphone consumer. Instead of looking for an 800 number to call, a QR code, a website to visit or a social media hash tag to find your product purchase; it will sent a “Call to action” directly to your mobile phone. These sensors will be able to deliver “The Call to Action” immediately when the consumer see’s the TV or Radio ad.