RCG Blog To The Point

Marketer Spending on the Rise in Mobile Ads


It’s time to take mobile ads seriously. According to The Economist, about half the adult population owns a smartphone; by 2020, 80% will. Nearly 80% of smartphone-owners check messages, news or other services within 15 minutes of getting up in the morning. As far back as a 2013 Mobile Consumer Habits study, three in four Americans (72%) admitted they are within five feet of their device most of the time.

As a marketing professional and mother to a teenager, I can attest to these facts first-hand. I’m researching my daughter’s back-to-school choices on my phone before hitting the retailers to determine whether an item is less expensive online or to find an app coupon to show at the register. I use my phone to look up a restaurant menu and movie times and flight reservations while I watch TV. So it makes sense to speak with clients about mobile ads with retail, hospitality, or service offers as part of their marketing spend.

Between an article just published in AdAge reporting “15 Mind-Blowing Stats About Mobile Marketing” and  list of power stats complied by Adknowledge contributor Brian Honigman in 2014,  there are some pretty compelling facts:

  1. Time spent browsing on mobile devices has exceeded PC usage.
  2. Media consumption on mobile is similar to TV and Internet, yet it sees under 10% of ad spend.
  3. What do consumers do on mobile? A whopping 99.5% access content/information, 63.1% access the Internet, 62.1% check email, 49.2% listen to music, 46% play games, 41.7% download and use apps, 15% make purchases and 15% read books.
  4. Mobile search queries (smartphones and tablets) are roughly 29% of total search volume.
  5. Facebook mobile users continue to exceed Facebook desktop users.
  6. Redeeming mobile coupons is on the rise.
  7. A majority of mobile searches result in immediate action.
  8. Click-through rates for mobile ads have seen a big boost: 27% year-over-year for tablets and 26% for smartphones.
  9. Although actual spend on mobile is low, smartphones and tablets accounted for 60% of time spent engaging with digital retail content in fourth quarter 2014, vs. 40% for desktop.
  10. A study has found that 79% of marketers would increase media allocation for mobile and digital marketing channels, and 74% would increase on social, if ROI tracking for those channels improved.
  11. Mobile is no longer just about short-form content, with 36% of respondents in an Interactive Advertising Bureau survey saying they watch videos that are five minutes or longer on their phones daily or more frequently.
  12. Time spent per day by adult Internet users has moved from less than an hour a day five years ago to nearly three hours a day today.

As an average consumer, I would definitely use my mobile to look for more coupons and incentives if made aware of where to search. At a recent event hosted by The Forbes Company, developer of luxury retail shopping destinations, its Corporate Director of Marketing and Operations noted the company is already utilizing mobile ads. Forbes has found them useful in multiple shopping malls to engage a younger shopping demographic and to track ROI for its tenants. The case is strong enough now to research consumer demographics and include goal-specific mobile ads in your proposals’ marketing mix, making your thinking look as forward as your projections of success.

Woman In Shopping Mall Using Mobile Phone


–Lori Herrala, Alchemy

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