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VG pushes its chips toward mobile advertising

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VG pushes its chips toward mobile advertising

“For mobile platforms, VG is more and more ad focused instead of user payment oriented,” he says. “Mobile is a powerful ad tool for all tactical, and sales-driven advertising.”

VG, owned by Schibsted, sits in the envious position of being the No. 1 destination for mobile in its market, impressive for a newspaper publisher. “It is very important for us to be in that position because the mobile space is much tighter than on the web,” Jacobsen said.

In the USA, while 10 percent of time spent is on mobile, only 1 percent of the ad spend goes there. “Over time, this will not last. Mobile will have a huge growth potential. My guess is that mobile will be the number one digital media platform in terms of revenue in just a few years. In Norway, we actually see this happening already.”

For VG, its mobile advertising revenue development is actually growing faster than usage. “And it´s a lot of money – it´s a significant share of our digital revenue.” So why is mobile so great for advertising. “It is everywhere, it's personal and you use it from morning to evening – from dusk till dawn.”

Not only is the mobile ad effect more efficient compared to other media, in terms of reach, targeting, viral and engagement, he said mobile is particularly ideal for selling goods, i.e. transaction-based advertising.

But one of his major arguments for mobile is the ARPU (average revenue per user) trends which are growing quickly. “This gives us all so much hope and most of it is being driven by advertising.”

Author

Dean Roper's picture

Dean Roper

Date

2012-09-05 11:12

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