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

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul
Read more

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year
Read more

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth
Read more