After reviewing the events in Mobile during 2013, we now focus on trends forecast for 2014. Many authors have stated their predictions of what will be popular in 2014, and a summary of some of those predictions is given it the following paragraphs.

Due to the increasing smartphone penetration, mobile advertising and its techniques are coming into focus. The number of LTE subscribers is expected to double in 2014 and with improvements in connection speeds new formats will open up for advertisers. This will particularly affects mobile video, currently limited by connection speeds and data limits. About 1.4 billion users worldwide, just more than half of Internet users, use a mobile device to access the Web and by 2017 nearly two-thirds of the global population will access the Internet using their mobile devices. Publishers will have to ensure their websites are fully optimized as mobile will no longer be an optional component of a Web strategy.

Differentiation of use for different devices is already happening and it will be more and more prominent. Desktops and laptops will be reserved for work, smartphones, smart watches and Google Glass for sharing and sourcing information, while tablets will be used for checking emails, reading the news, and accessing other forms of entertainment. Advertisers should, therefore, develop device-dependent strategies. For example, smartphone video ads should be shorter, around 5-10 second, tablet ads a bit longer – around 15 second, while traditional 30 seconds ads should be reserved for desktop. The challenge of making ads effective over a range of lengths is what awaits brands.

New creative formats, replacing banners and MPUs, will probably emerge in the following 12 months. We are expecting innovative rich media formats, completely different from standard ads. Mobile video is just one format that will certainly grow from this trend, making mobile advertising unrecognizable.

As mobile advertising becomes more efficient and provides greater consumer engagement, the way brands buy mobile inventory will shift from the standard Cost Per Mille (CPM) to a Cost Per Engagement (CPE) and Cost Per View (CPV) model, as advertisers increasingly realize it's the quality of the view that counts, not quantity. New analytics platforms will appear, allowing brands to better understand the value of their mobile buy across multiple Key Performance Metrics (KPI). Advertisers will probably invest more in technology needed to address the challenge of creating a complete picture of Return On Investment (ROI).

Almost all retailers have mobile website, but they still haven’t fully embraced mobile apps. However, about 85% customers prefer apps over mobile websites, which makes them worth the investment. According to TapSense, 80% of all m-commerce transactions are performed on iOS. Reports show, that while 41% of iOS users earn over 100K annually, only 24% of Android users do so. This results in lower purchase rates, and in that context, you only need to support the iPhone and iPad, while Android is nice to have.

Some of these predictions may not become reality in 2014, but it is certain that embracing new strategies and technologies is the way to win the battle for revenue online.

Sources:

1. theguardian
2. MediaPost
3. mullen
4. Search Engine Land
5. TapSense