Tag: mobile ad trends

Mobile ads are growing in use but marketers are still slow to accept them

| June 12, 2014

Advertisers have yet to warm up to this technique as they have yet to be convinced of the receptiveness of consumers.

Despite the fact that the rate of smartphone ownership is skyrocketing throughout the Middle Eastern region, and while mobile ads do seem to provide a tremendous amount of opportunity for marketers, those firms remain hesitant about its use as they have yet to receive adequate evidence to suggest that consumers will be entirely receptive to it.

This has led advertisers in the region to hold a lukewarm opinion of mobile marketing, at best, so far.

According to the Arabnet digital hub founder, Omar Christidis, “Mobile is probably the underserved segment and it is probably the most over looked opportunity in the market today.” This, even though the use of mobile ads is growing at an extremely rapid rate. However, when compared to other channels, there is still a considerable difference in the amount of money and resources that are being dedicated to marketing over smartphones and tablets.

It is only recently that spending growth for mobile ads has started to close in on other channels.

mobile ads and consumersChristidis also pointed out that “If you look at time spent on media versus ad dollars, the largest gap will be seen in mobile. This was the gap that existed even in developed markets until recently.” However he reminded that if the stats are examined, then it would show that the amount of for every ad dollar spent, there is more time spent viewing the advertisement is notably lower among mobile device users than it is among print readers.

Gartner has recently released a report that showed that by the end of this year, the amount of money spent on mobile advertising would reach the $18 billion mark. However, in the Middle East, that figure will be only $20 million. This is a measly statistic when taking the penetration of smartphones into consideration for that region.

However, the Criteo managing director of Eastern Europe and MEA, Dirk Henke pointed out that “It is very similar to advertising on desktop when it started.” Mobile ads appear to be following the same path as the original online advertising when it was in its infancy.

Mobile ad budgets rise by 75 percent

| March 31, 2014

Companies are now expected to spend nearly double, this year, what they did last year.

According to the results of a recent study, global mobile ad spending is rising extremely quickly, as it had reached $17.96 billion in 2013, having more than doubled since the year before, and now it is expected to nearly double once again this year.

The growth in 2014 should reach about 75 percent, to bring itself to a worldwide total of 431.5 billion.

The mobile ad spend total for this year represents about a quarter of all of the spending that has occurred on digital advertising. The two companies that will be benefiting the most as a result of this growing spending are Google Inc. and Facebook Inc. Last year, those two companies took in over two thirds of the amount of money that was spent on mobile marketing ads.

The mobile ad budget and spending data for the report was assembled by Millennial Media Inc.

That company offers data analysis for advertisers to help to provide valuable insight and shed some light on industry trends. The report helps to better understand the goals of advertisers based on the spending for the channel that occurred last year, compared it to the year before, and made predictions for this year. The data regarding ad spending had been published last week by eMarketer.Mobile Ads Budget

Millennial Media reported that the leading five vertical markets in terms of spending over the mobile channel for advertising, last year were: entertainment, retail, telecommunications, finance, and computer goods, in that order. When compared to the year before, entertainment and retail switched places, and automotive spending’s position was taken by consumer goods.

The consumer goods mobile spending has grown by 134 percent in 2014 alone. However, the largest increase that was seen year over year was in sports advertising. That sector increased the amount that it was pouring into ads by almost 500 percent. One of the trends that increased by the largest amount in terms of popularity and spending was rich media and video ads, which managed to increase 350 percent in the auto advertising sector when compared to banner ads.