According to an Interactive Advertising Bureau survey, a third of affluent consumers are willing to share their information online in exchange for a more personalized experience. This is not surprising. In a social world, people want to receive content and advertising that is meaningful to them. And the fact that consumers want to sign up for advertising is exactly what advertisers want. A recent survey conducted by The Relevancy Group revealed that 41% of marketers said that the most effective form of mobile ad campaigns are those where they pay only for signups—as opposed to clicks or impressions.
The Relevancy Group survey also revealed marketers’ challenges and priorities when it comes to mobile advertising. Below are key findings from the survey:
1. Marketers allocate only a moderate amount of their budgets to mobile advertising. 68% of marketers surveyed allocate between 1-20% of their digital advertising budget to mobile marketing. While eMarketer predicts that mobile ad spending will reach 1 billion dollars in 2011, mobile ad growth isn’t keeping up with the consumer adoption rate of smartphones, which is expected to reach 93 billion units this year (Morgan Stanley). While mobile ad spend is increasing, it’s doing so at a moderate rate.
2. Low ROI is a deterrent to increasing mobile ad spending. 43% of marketers who are not increasing mobile ad spending cite low ROI from mobile campaigns as a deterrent. However, 93% say that if they could see higher ROI from mobile campaigns, they would increase their mobile ad spending.
3. Marketers are dissatisfied with click-based ads. 56% of Fortune 500 marketers are dissatisfied or don’t use click-based advertising. These findings mirror the results of a December 2010 Harris Interactive survey, which found that half of smartphone users in the U.S. said they click on mobile ads by accident more often than they do on purpose. The implication of this finding is huge—it points to the fact that almost half of mobile advertising dollars are wasted.
The above findings clearly point to the fact that clicks may or may not work online, but they definitely don’t work in a mobile world. As Steve Jobs said at the 2010 Apple iOS conference, “People don’t click on mobile app ads because it yanks them outside the app.” Mobile advertising models that will deliver real, tangible results—such as ROI—are the ones that keep people inside mobile apps and those that don’t rely on clicks, such as Apple iAds and mobile signup ads.
Fortunately, marketers are beginning to prioritize their mobile advertising efforts toward ad models that are an alternative to click-based models, such as signup advertising. According to the Relevancy Group survey, 73% of marketers want to improve ROI for mobile ads, 54% want to increase email subscribers via mobile marketing, while 53% want to build a social community via mobile ad campaigns.
What’s more, by paying for actual signups—instead of clicks—marketers will derive more ROI from their mobile advertising campaigns.
The mobile ad industry is growing, but given the rapid consumer adoption of smartphones, it can grow much faster. By deemphasizing the click and moving toward pricing models that deliver ROI, the mobile ad industry can grow rapidly. Let it grow.
The Relevancy Group survey also revealed marketers’ challenges and priorities when it comes to mobile advertising. Below are key findings from the survey:
1. Marketers allocate only a moderate amount of their budgets to mobile advertising. 68% of marketers surveyed allocate between 1-20% of their digital advertising budget to mobile marketing. While eMarketer predicts that mobile ad spending will reach 1 billion dollars in 2011, mobile ad growth isn’t keeping up with the consumer adoption rate of smartphones, which is expected to reach 93 billion units this year (Morgan Stanley). While mobile ad spend is increasing, it’s doing so at a moderate rate.
2. Low ROI is a deterrent to increasing mobile ad spending. 43% of marketers who are not increasing mobile ad spending cite low ROI from mobile campaigns as a deterrent. However, 93% say that if they could see higher ROI from mobile campaigns, they would increase their mobile ad spending.
3. Marketers are dissatisfied with click-based ads. 56% of Fortune 500 marketers are dissatisfied or don’t use click-based advertising. These findings mirror the results of a December 2010 Harris Interactive survey, which found that half of smartphone users in the U.S. said they click on mobile ads by accident more often than they do on purpose. The implication of this finding is huge—it points to the fact that almost half of mobile advertising dollars are wasted.
The above findings clearly point to the fact that clicks may or may not work online, but they definitely don’t work in a mobile world. As Steve Jobs said at the 2010 Apple iOS conference, “People don’t click on mobile app ads because it yanks them outside the app.” Mobile advertising models that will deliver real, tangible results—such as ROI—are the ones that keep people inside mobile apps and those that don’t rely on clicks, such as Apple iAds and mobile signup ads.
Fortunately, marketers are beginning to prioritize their mobile advertising efforts toward ad models that are an alternative to click-based models, such as signup advertising. According to the Relevancy Group survey, 73% of marketers want to improve ROI for mobile ads, 54% want to increase email subscribers via mobile marketing, while 53% want to build a social community via mobile ad campaigns.
What’s more, by paying for actual signups—instead of clicks—marketers will derive more ROI from their mobile advertising campaigns.
The mobile ad industry is growing, but given the rapid consumer adoption of smartphones, it can grow much faster. By deemphasizing the click and moving toward pricing models that deliver ROI, the mobile ad industry can grow rapidly. Let it grow.
http://www.forbes.com/sites/marketshare/2011/08/05/how-2011-can-still-become-the-year-of-mobile-for-advertisers/
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