Marketers see more value in mobile and are increasing their budgets accordingly, says the IAB, based on results of their recent industry survey.
As mobile devices enable consumers to easily interact with brands, mobile advertising correspondingly attracts more budget and is expected to continue this upward trend.
Marketers at 300 U.S. companies increased their mobile advertising budgets by 142 percent from 2011 to 2013, according to Marketers Perceptions of Mobile Advertising, produced by Ovum for Interactive Advertising Bureau (IAB). Of the marketers surveyed this year, over one-third allocated more than $300,000 to mobile advertising, compared to merely seven percent in 2011. Among them, 16 percent spent more than $500,000 on mobile advertising, while the highest bracket in 2011 survey was "more than $300,000."
This year, Ovum also added B2B and B2C perspectives and introduced new questions to reflect the changes in mobile advertising over the last two years.
At the same time, 70 percent of respondents predict their mobile advertising spend will soar over the next two years, 5 percent up from 2011. Further, 19 percent expected that mobile advertising spend will increase by more than a half during the following two years.
"Marketers are seeing more value in mobile, so they are willing to allocate more of their marketing dollars to the medium," says Joe Laszlo, Senior Director of IAB. "The increase in budgets reflects the increasing size of the Smartphone and tablet audience in the United States."
Smartphones have been considered the most used device for mobile advertising campaigns during the past two years, but tablets are catching up. Over half of respondents flagged tablets as high priority, compared to 31 percent in 2011.
"A majority of American adults owns a Smartphone now, and tablet adoption by US households continues to grow," Laszlo tells ClickZ. "Marketers need to be on whatever media platform or device their customers are using, and so can't afford to ignore phones and tablets."
Indeed, consumers today use various channels to interact with brands. Marketers, in response to this, design ads across different screens in hopes they can drive sales, increase brand awareness and support special promotions.
Marketers deliver ads in various forms, as well. A deeper look at the use of rich mobile advertising inventory reveals that mobile website ads are highest at 70 percent this year, followed by banner advertising (49 percent), mobile search advertising (44 percent) and mobile messaging (41 percent).
It's worth noting that over half of marketers surveyed partnered with creative agencies this year to make the most of mobile advertising. Nearly eight in 10 respondents said they are "satisfied" or "completely satisfied" with creative agencies' ability to help them reach their mobile advertising objectives.
Over the next year, marketers will tackle mobile challenges including:
This most recent Marketer Perceptions of Mobile Advertising report was released by Ovum in September, 2013 and both updates and expands upon the survey of 2011. Both surveys analyzed data from 300 top-level brand marketing executives in the U.S. Get the full version of the 2013 report from IAB website.
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!
Yuyu Chen is an Editorial Intern at ClickZ. Her work has appeared in Local East Village, New York Daily News and Brooklyn Chamber of Commerce website. Yuyu received her M.A. in Business and Economic Reporting from New York University in May, 2013.
The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.