Mobile Advertising on the Open Web: Myths Busted

Mobile advertising has exploded in recent years, and it’s not slowing down anytime soon. In fact, by 2028, the market is expected to reach a staggering $500 billion in revenue. With people spending more time on their phones — 16 billion hours in mobile apps just in 2023 — there’s a massive opportunity for marketers. And while many are still sticking to familiar platforms like Facebook and Google, they’re missing out on what mobile advertising on the open internet has to offer.

Here's the thing: most user engagement (66%) happens on the open internet, not inside those walled gardens. And yet, misconceptions are holding businesses back. Maybe it feels a bit like uncharted territory, or perhaps the myths around effectiveness, targeting or inventory are causing hesitation.

In this article, we’ll cut through the noise and debunk the most common myths surrounding mobile advertising on the open web, so you can start making smarter, more impactful decisions for your campaigns.

Myth #1: Mobile Ads on the Open Internet Are Less Effective Than on Walled Gardens

The Myth

Many advertisers have this notion that platforms like Facebook and Google are the gold standard for mobile ads. They’re big, familiar and seem to deliver decent results, right? So, naturally, the assumption is that ads running on the open internet — across apps, websites and various networks — just can’t compete. It's easy to see why marketers stick to what they know, but here’s where that thinking falls short.

The Reality

The truth is, mobile ads on the open internet are not only competitive but also outperform those walled gardens when done right. Thanks to advancements in programmatic advertising and data integration, advertisers now have access to powerful tools that allow them to target users just as effectively — sometimes even more so.

On the open internet, you’re not limited to the data within a single platform. Instead, you can tap into multiple data sources, including first-party data, to build a clearer picture of your audience. Plus, programmatic platforms use machine learning to constantly optimize your campaigns in real-time, ensuring that you’re reaching the right people at the right moments, across a wide range of sites and apps.

Proof in the Numbers

Still not convinced? Let’s look at the numbers. Recent industry statistics illustrate the strong performance of open internet mobile ads, often matching or even exceeding that of walled gardens like Facebook and Google. For instance, the overall average click-through rate for Google Ads is reported at 1.6%, with specific sectors like B2B SaaS achieving up to 2.1%. Additionally, while the average cost per click (CPC) for Google Ads stands at $4.66, industries such as legal services see significantly higher costs. This rising trend in costs highlights the potential of open web campaigns, which, in many cases, yield comparable or higher engagement rates, as advertisers are increasingly drawn to the flexibility and broad reach of the open internet.

What’s more, by broadening your reach beyond a single platform’s ecosystem, you’re exposing your brand to entirely new audiences, increasing your chances of connecting with potential customers who might not be active in those walled gardens.

Myth #2: The Open Internet Is Too Complicated for Mobile Ads

The Myth

Advertisers tend to shy away from the open internet because, let’s be honest, it feels like a wild, uncharted jungle. Unlike walled gardens, where everything is neatly packaged and controlled, the open internet is this huge, decentralized space with countless apps, sites and platforms. It’s easy to think that managing mobile ads in such a space is just too complex and not worth the hassle.

The Reality

While it’s true that the open internet is a bigger and more varied landscape, that doesn’t mean it’s harder to navigate. In fact, with the right tools, it can actually be more effective for your mobile ad campaigns. Today’s advanced mobile demand-side platforms (DSPs) are built to handle the complexity of the open web. They use machine learning to help you not only target users precisely but also scale your campaigns efficiently.

What’s even better is that you’re not restricted to a single ecosystem. On the open internet, you can reach users across various apps, websites and networks, giving you far more flexibility and control over your campaigns. DSPs help you navigate the open web with ease, optimizing campaigns in real-time based on user data, engagement and behavior.

Proof in the Numbers

Studies have shown that advertisers who expand their campaigns to the open internet can achieve impressive results. For example, campaigns on the open internet can lead to up to a 40% higher reach compared to running ads only within walled gardens. Additionally, advertisers often see more favorable metrics like lower cost per acquisition (CPA) and higher return on ad spend (ROAS) when they diversify their approach across multiple open web platforms.

Myth #3: The Open Internet Lacks Targeting Precision

The Myth

There’s a widespread belief that when it comes to the open internet, targeting just isn’t as precise. Advertisers often assume that, compared to walled gardens with their rich user data, the open internet lacks the kind of deep insights needed to effectively target the right audience.

The Reality

This couldn’t be further from the truth. The open internet actually offers incredibly precise targeting opportunities, thanks to advanced mobile DSPs that leverage real-time data and machine learning. Unlike walled gardens, which often rely on historical or aggregated data, DSPs on the open web take advantage of first-party data directly from apps and websites, along with contextual signals like location, time of day and even a user’s battery life.

Here’s how it works: mobile DSPs analyze user behavior in real-time, delivering ads that are tailored to the specific context in which users are engaging. If someone is browsing apps on their commute, for example, the ad they see may differ from what they see later in the day at home. Machine learning continuously refines these campaigns, ensuring that each ad reaches the most relevant audience, in the most effective way possible.

Proof in the Numbers

A report by OpenX and The Harris Poll highlights that consumers generally find ads on the open web to be more relevant and impactful. Many respondents reported that they trust the content they consume on open web sites more than content on platforms like Facebook and Instagram, with 74% expressing higher trust in open web content.

One key stat highlights the power of mobile DSPs: advertisers using these platforms saw a 30% improvement in conversion rates by tapping into real-time user behavior data, optimizing campaigns based on immediate user context.

Myth #4: Historical Data Is Enough for Targeting Mobile Ads

The Myth

Many marketers think that using historical, cohort-based data is all they need for effective targeting in mobile advertising. They believe that this kind of data provides a solid foundation for reaching the right audience.

The Reality

Relying solely on historical data can limit your campaign's effectiveness. As we mentioned before, advanced mobile DSPs don’t just rely on what users have done in the past; they leverage real-time insights, including first-party data from apps and websites, along with contextual cues like location and time of day. This allows advertisers to deliver ads that are timely and relevant.

Proof in the Numbers

The benefits of real-time data are clear. A report from the Interactive Advertising Bureau (IAB) shows that campaigns utilizing real-time data analytics can achieve a 50% improvement in ad performance compared to those using only historical data. Furthermore, eMarketer found that leveraging machine learning can lead to up to a 25% increase in targeting accuracy, greatly enhancing overall campaign effectiveness.

Myth #5: Ad Fraud Is Rampant on the Open Internet

The Myth

A common belief is that the open internet is a breeding ground for ad fraud, making it risky for advertisers. Many think that without the tight control of walled gardens, their ad spend is more vulnerable to fraudulent activities.

The Reality

While concerns about ad fraud are valid, the landscape of the open web has evolved significantly. Thanks to advancements in anti-fraud technologies, the risks associated with ad fraud have dramatically decreased. Tools like ads.txt — which helps ensure that ads are only served by verified sellers — are making it easier to identify and prevent fraud.

Moreover, partnerships with reputable supply-side platforms (SSPs) enhance security. These partnerships help ensure that advertisers are connecting with trusted publishers and reducing the chances of encountering fraud. The rise of programmatic advertising has also brought more transparency, allowing advertisers to trace where their ads are being placed and how their budget is being spent.

Proof in the Numbers

Research from the Association of National Advertisers (ANA) found that sophisticated fraud detection tools have improved the overall integrity of digital advertising. In fact, 68% of marketers reported that implementing advanced fraud prevention measures has significantly reduced their exposure to fraudulent activity. Additionally, a study by Statista estimates that in 2023, ad fraud cost businesses $88 billion, largely due to expenses from fraudulent clicks and bot traffic instead of real users. This figure is expected to more than double by 2028, potentially reaching $172 billion.

Myth #6: You Need Exclusive Inventory for Successful Mobile Ads

The Myth

There is a belief amongst advertisers that having exclusive access to certain inventories is crucial for running successful mobile advertising campaigns. The thinking is that without these unique placements, advertisers can’t effectively reach their target audiences.

The Reality

This notion is misleading. The key to success in mobile advertising lies in effectively reaching relevant audiences through commonly available inventory. By leveraging advanced machine learning, advertisers can identify the best supply paths and ad placements that yield optimal results.

Instead of fixating on exclusive deals, marketers should focus on user-centric targeting. Understanding who your audience is and what they want — regardless of where they engage with content — is critical. Mobile demand-side platforms (DSPs) provide access to vast pools of data that help connect with potential customers in ways that resonate with them. Many advertisers limit themselves by concentrating solely on popular publishers, missing out on high-value users in less competitive spaces. Focusing on user behavior rather than specific publishers can yield better results.

Proof in the Numbers

Campaigns leveraging user-centric targeting have shown remarkable success. Advertisers focusing on broader inventory saw a 25% increase in overall engagement rates compared to those fixated on exclusive deals. Furthermore, a report by eMarketer highlighted that using machine learning to optimize inventory access led to a 30% improvement in campaign ROI across various ad placements.

Myth #7: The Open Internet Has Poor User Experience

The Myth

When you think of ads on the open internet, you might picture annoying pop-ups, slow-loading pages and formats that interrupt your browsing experience. Many believe that the open web is full of intrusive ads that frustrate users rather than engage them.

The Reality

With the rise of native advertising and technologies like Accelerated Mobile Pages (AMP), the landscape of online ads has evolved dramatically. Native ads blend seamlessly with the content users are already engaging with, making the experience feel more organic and less intrusive. AMP enhances load times, ensuring users don’t have to wait around for pages to display. This shift not only improves user satisfaction but also boosts engagement rates.

For example, native advertising has been shown to generate higher click-through rates than traditional display ads. According to a study by Native Advertising Institute, native ads can lead to an 18% increase in purchase intent. Meanwhile, Google’s AMP project has proven that faster load times can reduce bounce rates and improve user retention. A report from Think with Google states that 53% of mobile users will abandon a site that takes longer than three seconds to load.

Proof in the Numbers

The user experience on the open internet is not only improving; it's becoming a competitive advantage. 70% of users prefer ads that are relevant to their interests and feel less frustrated with ads that blend in with the content. Furthermore, native ads had 20%-60% higher engagement rates than display advertising.

Myths and Realities of the Open Internet: A Recap

Dare to Explore: The Untapped Potential of Open Internet Advertising

As we’ve explored, the open internet is brimming with potential for mobile advertising. It's a dynamic landscape that not only offers advanced targeting and impressive engagement rates but also fosters a more user-friendly experience. With the right tools and strategies, advertisers can tap into this wealth of opportunities and create impactful campaigns that resonate with audiences.

Platforms like MGID are designed to empower advertisers in navigating the open web. With innovative solutions that leverage real-time data, machine learning and user-centric targeting, MGID helps you maximize your campaign's reach and effectiveness. By registering with MGID, you gain access to a robust platform that enables you to optimize your mobile advertising efforts beyond the confines of traditional walled gardens.

So, why limit your advertising strategy? The open internet offers a treasure trove of possibilities waiting to be explored. Embrace modern tools and strategies to unlock your campaign's full potential. Dive into the open web, and watch your mobile advertising reach new heights!