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13 2011

The Mobile Market Explodes But Mobile Advertising Does Not Follow

Posted in Mobile Advertising | 0 comments


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mobile advertisingWhy is it that the explosion of mobile has not been followed by an explosion in the mobile advertising market?  We all know the amazing growth mobile is enjoying right now: 93 million smart phones slated to be shipped in 2011, 183 billion mobile apps to be downloaded by 2015, over 90% of the US population using text messaging. The statistics just go on and on.

Oddly, the same growth is just not happening with mobile ad spend.  It is growing but quite modestly.  A majority of marketers (68%) according to a recent survey done by The Relevancy Group allocate a small 1-20% of their spending to mobile ads.

The hesitancy to endorse mobile advertising stems from the following reasons.  Marketers complain about:

1.      A low ROI

2.      A high number of accidental clicks

3.      Mobile advertising models currently deemphasize a click. To quote Steve Jobs, “People don’t click on mobile app ads because it yanks them outside the app.”

Whatever you think of a ‘click-based’ model online, it is clear that it is far from perfect in the mobile sphere.

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