Tag: mobile ad spending

Companies will be spending more to advertise and promote over that channel in the next 12 months.

A recent report on mobile marketing and commerce has determined that showrooming may not be considered to be as great of a threat as expected, as only 11 percent of retailers participating in a study claimed that they felt that it is a shopping behavior that could be harmful to their own revenues.

For this reason, many companies are pouring more money into the channel to help to boost their in store experience.

The research, which was published by BuyDesire and Econsultancy determined that most companies will be increasing their mobile marketing budgets over the next year and that this reflects a greater adoption of the channel, overall. They showed that out of every ten companies, seven have said that they would be increasing their spending in this area within the 12 months following the survey. The purpose is to keep up with the growth of the channel.

Only a small number of companies are currently using mobile marketing at the moment.

However, the current trends are changing and although the majority of companies are not using mobile marketing at the moment, they are changing their tunes and will primarily be doing so within the next year in some shape or form. They will be incorporating these technologies into their overall strategies on a growing basis.

The survey was conducted by the company from July through August and involved the participation of over 500 agency and in-house marketers. Among them, almost one third (29 percent) intend to use tablet optimized websites for the first time in the next year, with a considerable growth in location based mobile marketing (22 percent) and m-commerce (20 percent).

According to an Econsultancy research analysis, Bola Awoniyi, who spoke about these mobile marketing study results, “The research makes it clear we are at a tipping point with regards to mobile marketing and m-commerce. More companies that have been treading water with mobile technology will be taking the plunge in the near future.” It was also seen that only 11 percent feel threatened in any way by showrooming, even though 67 percent noted that the in-store use of smartphones was rising.

New ad formats and mechanisms change consumer perceptions

Hampshire, UK – 22nd October 2013: A new report from Juniper Research has found that increased utilisation of analytics platforms, allied to the introduction of innovative ad formats and purchasing mechanisms, will push global mobile ad spend beyond $39 billion in 2018, up from $13 billion this year.

Rich Media Ads Lead

The report – Mobile Advertising: In-App, Mobile Internet & Messaging Strategies 2013-2018 –highlighted the opportunities offered by targeted in-app advertising, citing the dramatic success of Facebook in monetising its native applications over the past year. Mobile now contributes 41% to its overall advertising revenue. Facebook recently announced that it is going to begin rolling out video ads, a move illustrative of the wider industry trend for interactive rich media ads, away from underperforming mobile banner adverts.

Furthermore, the report observed that the growth of Real-Time Bidding (RTB), a mechanism which lets advertisers buy impressions in real-time, means that publishers will be able to more easily sell their advertising inventory, which will thereby boost overall mobile ad spend.

”A Change in Consumer Perceptions”

However the report also pointed out that some brands still remain wary of the mobile channel due to concerns that mobile advertisements may be perceived as inappropriate or intrusive. Indeed, the report noted the disproportionately low spend on mobile advertising, versus other mediums, relative to the high engagement levels that frequently occur.

Report author Sian Rowlands pointed out, however, that “we are witnessing a change in consumer perceptions of mobile advertising as advertisers begin to use opt-in, or reward-style advertising; by harnessing big data and location information, mobile ads are being better targeted to users.”

Other Key Findings from the Report Include:

•    The fastest growing region, in terms of mobile ad spend, will be the Indian Subcontinent. Spend here will increase four times from 2013 to 2018.

•    Advertisers can increase conversions by simply adding mobile optimised features, for instance a ‘click to call’ button, or by linking to the correct app store.

The “Mobile Advertising – It All Ads Up” whitepaper is available to download from the Juniper website together with further details of the full report.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

For further details please contact Michele Ince, Press Relations

[email protected]