Skip to main content

U.S. Consumers are Less Likely to Avoid Mobile Ads


Advertising that's displayed on mobile devices, such as smartphones and tablets, is gaining momentum in the U.S. market. Relatively speaking, people that are exposed to it are more likely to engage with the content. In contrast, prior research has focused on the accelerating trend of "advertising avoidance" by most consumers in America. The slight difference in consumer receptiveness has started to impact marketer's budget allocations.

eMarketer estimates U.S. advertisers will spend over $1.1 billion on mobile this year -- up by 48 percent from 2010 spending levels. Of that amount, 30 percent, or $334.5 million, will go to display ads (excluding video). Moreover, eMarketer predicts that in 2012 mobile display spending will surpass messaging -- the current leader in spending.

Display banner advertising will constitute the largest portion of U.S. mobile ad spending.

As more marketers from across industries begin to embrace mobile advertising, more attempts at measuring their efforts will emerge. Benchmarking efforts by MediaMind (formerly Eyeblaster) indicate that campaigns for different verticals should have different expectations -- and that mobile banners see more clicks than standard banners on the PC-based internet.

In July 2010, MediaMind released statistics from 2009 showing that mobile banners beat standard banners in both clicks and conversions for automotive campaigns. Now, the higher click-through rate (CTR ) for mobile banners can be extended across verticals.

MediaMind found that the average CTR on mobile banners on their network was 0.61 percent. That was more than eight times as high as the CTR for standard online banners in advertising campaigns that also had at least one mobile ad.

Campaigns for the entertainment industry demonstrated the highest mobile banner click-through rates, at 1.04 percent, followed by retail industry mobile banners, at 0.84 percent. Apparel, electronics and automobile ads had the lowest level of engagement.

The research also showed click rates varied by mobile operating system. iPhone and iPad users were significantly more likely to click on mobile banners than those with an Android device or BlackBerry. It's not clear why there's a difference -- perhaps additional research may uncover the reason(s) why.

Furthermore, if successful ad engagement barely tops one percent of the total ad impressions, then perhaps marketers need to seriously consider the alternative -- and more effective -- ways to reach their customers and prospects via mobile media. The notion of celebrating "slightly less advertising avoidance" seems misguided.

Popular posts from this blog

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe