Posts Tagged ‘Ad Mob’

Mobile Advertising Is Growing

Tuesday, August 10th, 2010

Take a look at some of the recent trends in this growing media

We have been writing a lot about mobile lately since we are deep in the planning process for a mobile retail mobile advertising project.

Last year, advertisers spent $218 million on mobile advertising according to research firm IDC. This year the total is expected to be $418 million and reach $1.8 billion by 2014. Recently, Apple announced iAd, its own ad network for iPhones and iPads. And, Google now owns mobile ad networks Ad Mob and Quattro. The market makers are certainly banking on the enormous potential of mobile advertising. Supporting the growth in mobile advertising is the growth in mobile search. Google is reporting a 500% increase in mobile search with 1/3 of the searches seeking local content.

Nielson sees the mobile ad market splitting into two main segments, premium ads and mass market ads. Premium ads are commanding premium prices from advertisers. According to Medialets, cost per thousand impressions ranges from $15 to $50 for a rich media ad. Banner ad costs are ranging from $8 to $15 cost per thousand impressions. Advertisers are willing to pay the premium prices for media rich ads since they are effective in holding a consumer’s attention and brand recall.

So what is working from the consumer’s perspective?

According to a recent Harris Interactive poll, consumers are willing to tolerate mobile ads if they are unobtrusive, targeted toward their taste and offer something unique. Interestingly, 56% of the teenagers surveyed said they would be interested in ads with incentives with 37% of adults surveyed saying the same. The number one incentive named by all polled was cash. This was followed by entertainment downloads, free mobile minutes and discounts.

Mobile advertising will continue to grow and evolve. For mobile advertising service providers and ad agencies, the revenue and profit opportunity for mobile campaigns still lags far behind the traditional and online media channels.

Okay. So how will the recent trends in mobile advertising impact how you manage your business in the digital world?