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Mobile ad spend continues to grow

13 Feb 2012 2:18 GMT Back
Mobile ad spend continues to grow
DMA News

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Marketers are spending more on mobile advertising. An Interactive Advertising Bureau study found that 63% of US marketers have upped their spend on mobile over the past two years with 29% reporting an increase of over 50%. 

Nearly three-quarters of respondents (72%) said they plan to increase their mobile spend over the next two years and 35% of respondents expect to increase spend by over 50%.

The 'Marketer Perspectives on Mobile Advertising' study asked 300 top-level brand marketing executives in the US about their perspectives on mobile advertising

Additional results revealed that half (51%) of the brand marketers surveyed already treat mobile platforms as an integral element of their overall advertising strategy. 

Those who have yet to do so are intrigued by the benefits of mobile advertising, but are currently exploring how best to leverage mobile platforms within their marketing plans. More than a third (35%) stated they are “experimenting” with mobile, while another 14% are tapping into mobile on an ad hoc basis.

Benefits of mobile advertising as cited by respondents: 

  • Immediacy (considered of high importance by 57% of respondents)
  • Cost-effectiveness (54%)
  • Increased engagement (52%)

The most popular devices for mobile ad campaigns are:

  • Smartphones (a high priority for 60% of respondents)
  • Tablets (31%)
  • Feature phones (22%)
  • Ebooks (10%)
  • Connected games consoles (3%)

Beyond being asked about interest and engagement in the mobile space, respondents were also queried about challenges. 

They cited several key hurdles in deciding whether to make larger mobile ad buys:

  • Device fragmentation (cited by 72% of respondents as a challenge of medium or high importance)
  • Privacy issues (70%)
  • Lack of standardised metrics (69%)

A significant number (60%) also ranked a limited opportunity for creative as a mobile challenge, which could in part be a reflection that most of those surveyed (62%) do not use creative agencies for mobile advertising. However, a majority (85%) of those marketers who are working with a creative agency on their mobile advertising objectives said that these partnerships produced good results.

Mobile advertising is advancing rapidly and many of the issues that slowed progress in earlier years have been overcome, for example constraints imposed by networks and mobile phone limitations have radically improved through developments in, respectively, mobile broadband and smartphones,” said Eden Zoller, principal analyst with Ovum and author of the report. 

Posted by 

Smarayda Christoforou

 

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