Mobile Advertising Still A Work In Process

by , , Staff Writer @mp_research, April 20, 2016



Based on a survey of client-side advertisers and agencies, this report explores the extent to which brands are putting mobile at the center of their integrated marketing activities.


According to the ClickZ Intelligence Report about the State of Mobile Advertising 2016, many advertisers are still early on their journey towards mobile advertising sophistication. Only 13% of advertisers regard themselves as advanced, while 31% say they are intermediate. The remaining 56% describe themselves as beginners, though this figure is significantly lower in North America (42%) than in Europe (57%).
























How Would You Characterize Mobile Advertising Efforts?


 


Client-side respondent


Agency-side respondent


Intermediate–carry out mobile advertising successfully but it is ad hoc and not properly integrated


31%


40%


Beginner– any mobile advertising is, at best, a bolt-on to desktop- focused activities


56


44


Advanced–take a mobile-first approach as part of an integrated advertising strategy


13


16


Source: ClickZ State of Mobile Advertising, April 2016


Only 6% of those who rate themselves at the beginner level regard the return on investment (ROI) from overall mobile advertising as ‘good’ or ‘excellent’, compared to 59% for companies who classify themselves as advanced.


Despite how quickly consumers have embraced mobile as a primary means of seeking out information during every stage of their buying journey, brands still aren’t using every tactic at their disposal to connect with audiences.


It is worth noting some regional differences here. Only 43% of Europe-based advertisers surveyed describe themselves as advanced or intermediate, compared to a healthier 58% in North America Companies continue to plough vast sums of money into traditional forms of advertising where the return on investment is still not fully understood.
























How Would You Characterize Your Organizations Mobile Advertising Efforts In:


Mobile Activity


North America


Europe


Advanced – we take a mobile-first approach as part of an integrated advertising strategy


18%


14%


Intermediate – we carry out mobile advertising successfully but it is ad hoc and not properly integrated


40%


29%


Beginner – any mobile advertising we do is, at best, a bolt-on to desktop- focused activities


42%


57%


Source: ClickZ State of Mobile Advertising, April 2016


Social is a major focal point for mobile advertisers, with paid social the tactic most commonly employed by companies surveyed. More than two-thirds of client-side respondents say they are increasing their mobile-related investment on Facebook this year. The focus on social comes as brands ramp up their efforts to align their advertising activities with consumer behavior.




































Are You Increasing Or Decreasing Your Mobile Investment In The Following Social Properties During 2016?


 


Client-side respondents


 


Increasing


Keeping the same


Decreasing


Facebook


68%


27%


5%


Instagram


50


41


9


LinkedIn


48


37


16


Twitter


40


46


13


Source: ClickZ State of Mobile Advertising, April 2016


46% of respondents agree that their ‘mobile advertising spend is in line with customer consumption of media through mobile’, but 34% disagree.


























Mobile Advertising Spend In Line With Customers’ Consumption Of Media Through Mobile


Degree


% of Respondents


Strongly agree


14%


Somewhat agree


32%


Neutral


20%


Somewhat disagree


23%


Strongly disagree


11%


Source: ClickZ State of Mobile Advertising, April 2016


The research shows that lead generation and direct online sales represent the two most prevalent objectives of marketers using mobile media. Paid search is found to be the leading mobile channel for meeting these objectives, while also seen as the best channel for ROI.







































How Do You Rate The Effectiveness Of Your Mobile Advertising For Addressing Different Stages Of The Marketing Funnel (Client-Side Respondents)


 


Effectiveness


Marketing Stages


Excellent


Good


Okay


Poor


Don’t know


Top of funnel – Creating brand awareness


12%


23%


33%


15%


17%


Middle of funnel – Deepening engagement with brand (consideration)


4


28


32


19


16


Bottom of funnel – Conversion (capturing user intent)


8


14


29


30


18


Source: ClickZ State of Mobile Advertising, April 2016


Advertisers who have seen the advantages of programmatic advertising on desktop are now reaping the benefits of a more data-driven and targeted approach through mobile. More than half of advertisers surveyed are increasing their budgets this year for programmatic mobile. Data management platforms continue to gain traction as advertisers seek to extract as much value as possible from their first-party and third-party data; 39% of advertisers say they are increasing investment in DMPs this year.


























































Increasing Or Decreasing Mobile Advertising Investment In The Following Areas During 2016 (Client-Side Respondents)


 


Increasing


Same


Decreasing


Programmatic display


56%


41%


4%


Programmatic mobile


52


42


4


Programmatic video


52


41


7


Mobile-specific ad networks


49


48


3


Ad exchanges


41


49


10


Demand-side platform (DSP)


40


53


6


Data management platform (DMP)


39


57


3


Third-party ad serving


37


50


13


Premium direct


25


59


16


Source: ClickZ State of Mobile Advertising, April 2016


Concluding, the report says that for all respondents, both advertisers and agencies, the most commonly cited significant challenge was a ‘lack of resources / budget’, with 53% of client respondents and 50% of agency respondents choosing this option. The report suggests, however, that perceived issues around resourcing and budget generally point to a lack of prioritization and focus as the true barrier to success.


For additional information from ClickZ please visit here.


 


 


 


 


 


MediaPost.com: Search Marketing Daily

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