Mobile Marketing

Category: Mobile Marketing

Mobile marketing budgets to increase by 25 percent

Lucy | October 1, 2015

A recent India based study has shown that interest in advertising over this channel is growing fast.

Even though marketers in India typically reserve 10 percent or less of their total advertising budget for mobile marketing, a new report has indicated that this trend is currently changing and that by the end of the year, that figure will have risen by 25 percent.

Marketing firms in India tend to spend less of their overall ad budgets on mobile than Asian Pacific counterparts.

Almost 75 percent of marketers in India currently reserve 10 percent or less of their overall ad budgets for mobile marketing. In Asia Pacific countries, only 66 percent have such a low percentage reserved for this channel. This, according to a report that has been issued by Warc and the Mobile Marketing Association. That said, the report did take care to underscore the fact that much of the industry is expecting to increase their amount of spending on smartphone ads by 25 percent.

The portion of the mobile marketing budget will also continue to rise by another 51 to 99 percent by 2020.

There will also be overall advertising budget growth heading to India, this year. Therefore, even though there will still be companies that will be spending only 10 percent of their total budget on mobile ads, the amount of money actually being spent will be increasing. In fact, the total budgets in India are predicted to rise by an average of 46 percent, which is slightly higher than Asia Pacific company counterparts, where the prediction is a 43 percent increase.

To explain the growth in the amount of spending that will be dedicated to mobile advertising, the report indicated that the cost associated with smartphone ads has increased by 49 percent. Therefore, to maintain the same strategy, it is costing companies more. “While marketers appreciate the importance of the mobile channel in India, full potential of mobile advertising is still to be realized,” said the report.

Approximately 47 percent of the respondents to this survey stated that they felt that mobile marketing is an effective channel and that it provides brands with benefit.

Ad blockers are becoming a threat to the survival of some sites

JT | September 29, 2015

Those advertisements that have become a nuisance to the mobile web may be vital to its existence.

Among the frustrations that are the most common about the mobile web are the ads and automatically playing videos that cause us to have to wait excessive amounts of time for a page to load, but the ad blockers that have been providing relief from that experience may now be threatening the existence of some websites.

The reason is that many free sites depend on the display of advertising for their livelihood, to make them worthwhile.

iPhones and iPads now have the opportunity to be able to use apps that function as ad blockers and millions of mobile device users have chosen to download and install those applications to speed up their experience on the mobile web while avoiding annoying accidental ad clicks. At the same time, websites and publishers often depend heavily on advertising revenue in order to make their very existence worthwhile, as the ads pay for the amount of time that is put into maintaining them.

This has some sites watching the rise of ad blockers with bitten-down nails as their primary income is threatened.

Mobile Ad Blockers Advertising revenue is vital to companies ranging from tiny to giant such as Google, The New York Times, and Hulu. While panic has yet to set in for the majority of websites, they certainly have their eye on this trend and some websites are already working hard to be able to reduce any annoyance that their ads may be causing so that their regular users won’t be driven to ad blocking altogether.

According to the Harvard University director of the Nieman Journalism Lab, Joshua Benton, “It is possible to be too alarmist about ad blockers, but it’s a very real phenomenon.” It all depends on the proportion of mobile device users who opt to install these apps. He explained that there will be a very big difference between having 5 percent or 80 percent of iPhone users installing these mobile apps.

He cautioned that if advertising practices become too annoying, it could lead consumers to take action through ad blockers in order to make them disappear, going the way of the pop-up window (a technique that is automatically blocked by many browsers due to user frustration).