With thanks to: Mobyaffiliates
Posted by ] Patricio Robles
For many years, mobile has been the ‘next big thing’ for advertisers. And to be sure, the market for mobile ads has grown by leaps and bounds in dollar-terms.
The latest figure evidencing the growth of mobile as an advertising medium: according to comScore, the number of advertisers in the U.S. running mobile campaigns has grown exponentially in the past two years.
When comScore looked at Ad Metrix Mobile data for 600 of the mobile internet‘s properties in April, the number of advertisers was 689, an increase of more than 120% from two years ago.
In theory, mobile will have a key role to play in most multichannel advertising strategies in the future, and the timing appears to be right now. Thanks in large part to the rise of smart phones and greater use of the mobile internet, advertisers are increasingly experimenting with mobile ads. And in many cases, they should be liking what they see.
According to a recent study, click through rates on mobile search ads are 2.7% higher on average than their desktop counterparts.
But there’s still a huge amount of room for growth. Right now, comScore says that the mobile content and publishing category accounts for 50% of mobile ads served, with consumer discretionary representing another 26%.
That means more than three-quarters of mobile ads cover just two categories. Lucrative categories, like financial services, aren’t as prominent — yet.
The key to continued growth of mobile advertising would appear to be continued smart phone ownership. According to comScore, smart phone users access their mobile browsers and mobile apps at much greater clips than their feature phone-owning counterparts, 82.3% and 85% to 19.1% and 15.9%, respectively.
Currently, 31% of mobile phone owners have a smart phone. But that number is increasing rapidly; last year, just 20% of mobile phone owners in the U.S. owned a smart phone.
The numbers make it clear: if the number of smart phone owners keeps going up, so too will the number of advertisers spending on mobile ads. In turn, publishers already active in mobile will see more opportunities to build ad revenue, and publishers not active in mobile will have greater incentives to develop a mobile strategy.
Posted By ] By Douglas MacMillan
Mobile advertising in China will grow 158 percent by 2014, EMarketer predicted in a report to be published today. In the U.S., mobile ad sales will grow 131 percent to $2.55 billion over the same period, the report said.
Advertisers are boosting spending on text and graphic display ads for handheld devices in China as portions of the world’s largest Web market increasingly migrate to mobile phones. The country will add almost 200 million mobile Internet users over the next three years, bringing the total to 568 million in 2014, according to EMarketer.
“Because mobile devices are often the primary way that consumers access digital content” in China and other emerging markets, advertisers enjoy a “heightened appeal relative to a more mature market, where you have higher PC penetration rates,” said Noah Elkin, principal analyst at EMarketer in New York.
Emerging markets for mobile advertising such as India, Brazil and Russia are growing at even faster rates than China. India’s mobile ad spending will total $190 million in 2014, up more than threefold from this year. Brazil’s mobile ads will grow almost fivefold to $117 million in the same period. Mobile advertising in Russia will more than triple to $72 million in 2014.
In the U.S., competition for mobile ad dollars has drawn large technology companies to make acquisitions in the industry. Google Inc. (GOOG) purchased mobile ad provider AdMob last year for about $700 million. The same year, Apple Inc. (AAPL) acquired Quattro Wireless, another startup selling ads placed on mobile devices.
Posted By ] Giselle Tsirulnik
There is no question as to whether consumers have embraced smartphones with open arms, and the mobile Internet has finally reached enough scale to offer critical opportunities for marketers, according to Yahoo Inc.
According to Yahoo’s report, “Mobile Internet – Delivering on the Promise of Mobile Advertising,” brands have not yet realized the full potential of mobile advertising. In order to do so in 2011, brands need to approach mobile as a channel and not just a strategy.
“Mobile Internet came of age in 2010, offering advertisers the scale, tools and technology to develop effective campaigns and vie for a fair share of major media budgets,” Yahoo says in the executive summary of the report. “However, mobile advertising still lags behind the opportunity.
“Will brands realize the full potential of mobile in 2011? To do so, marketers will need to approach mobile as a channel, not a strategy, albeit a particularly effective channel due to its ability to connect with consumers in a very personal way.
“If it feels like mobile phones are everywhere, it’s because they are.”
Mobile phones are personal devices and consumers are unusually attached to them, claiming they are an extension of their person and psyche, per Yahoo.
This dependence on the mobile device is for more than just voice services. Consumers are consuming a huge amount of content via their devices, with the Internet at the top of the content consumption food chain.
According to Yahoo, 86 percent of mobile Internet users surf the mobile Web while watching television.
Consumers are increasingly relying on their mobile devices for shopping, checking bank balances, locating restaurants or stores, navigating routes, monitoring health, paying bills, downloading music and videos, texting friends and making phone calls.
Yahoo says these behaviors prove that consumers have embraced smartphones with open arms and mobile Internet has finally reached enough scale to offer critical opportunities for marketers.
And then came the tablet.
Yahoo says in its report that tablets have emerged as a potential contender for screen dominance. With approximately 10.3 million tablet users in 2010 and that number expected to reach 82.1 million by 2015, tablets such as the iPad have undoubtedly caused a disruption in the mobile space.
In 2012 tablet sales will grow to 36 percent of U.S. PC sales, according to Yahoo, and this number will likely outstrip notebooks/mini-PCs, which are expected to be 32 percent of overall PC sales.
IPad users are open to advertising, especially if coupled with an interesting video (49 percent) or interactive features (46 percent), according to Yahoo.
There are obvious opportunities having to do with mobile advertising.
“Faster network speeds, function-rich smartphones and tablets, a burgeoning portfolio of applications and more engaging ad formats like screen takeovers and expandable ads enable mobile to compete with more established media,” the Yahoo report says. “As for mobile’s position in the media rankings, the facts speak for themselves.
“Mobile attracts younger, more affluent and more educated consumers and delivers on performance benchmarks such as awareness, message association and purchase intent,” it says.
Yahoo claims the most important function of the mobile device, as it pertains to marketing, is its ability to move the consumer through the purchase funnel.
Fifty percent of mobile users claim they have gone on to make a purchase after researching on their device, per Yahoo. A whopping 90 percent of mobile users access the Internet while in retail locations, turning the device into a sort of shopping companion.
According to Yahoo, mobile advertising is most effective when campaigns are coupled with online display. The company said in its report that the combination of mobile and online amplifies budget efficiencies and achieves synergies that increase key metrics such as awareness and purchase intent.
To prove this point, integrated mobile and PC campaigns resulted in a 54 percent increase in brand awareness, a 46 percent increase in brand favorability and a 42 percent increase in aided brand awareness, according to Yahoo.
Additionally, click-through rates on a movie campaign on mobile are 30-times higher than the PC counterpart. Ad recall scored 15 percent higher among users who viewed a mobile ad than any other channel.
“Use mobile ad buys strategically to smooth over audience troughs when traditional advertising traffic diminishes during work hours and on weekends,” Yahoo says in its report. “Mobile is finally scalable enough to be an extension of an advertiser’s communication strategy and should be incorporated into all buys.”