Marketers are reaping the benefits of mobile advertising
Posted on Jan 23, 2013 by YuMe
The constant evolution of the mobile device market is providing advertisers with growing opportunities. Technological advances in smartphones and tablets allow users to consume more content on the go than ever before. Meanwhile, as the market expands, cheaper options are hitting store shelves, making smart technology use more accessible and more widespread.
People are using their mobile devices to watch videos anywhere and everywhere, which is leading brands that once reserved their marketing efforts for television, a more traditional medium, to explore the advertising potential of mobile.
The numbers don’t lie
Worldwide, mobile advertising revenue in 2013 is expected to hit $11.4 billion in 2013, according to a recent forecast by Gartner. The research and advisory company said mobile advertising hit $9.6 billion in 2012.
“Smartphones and media tablets extend the addressable market for mobile advertising in more and more geographies as an increasing population of users spends an increasing share of its time with these devices,” Andrew Frank, research vice president at Gartner, said in a press release. “This market will therefore become easier to segment and target, driving the growth of mobile advertising spend for brands and advertisers.” He added, “Mobile advertising should be integrated into advertisers’ overall marketing campaigns in order to connect with their audience in very specific, actionable ways through their smartphones and/or tablets.”
Because of the growing number of platforms available to advertisers, opportunities to market content will become cheaper, Gartner predicted.
A national study by eMarketer found similar results. Brand investment in mobile advertising will rise 180 percent this year to reach $4 billion and that amount will hit $21 billion by 2016.
Where are advertising efforts going?
While companies fuel more marketing dollars and efforts into mobile advertising, a survey of nearly 800 professionals in advertising, video content production and ad networks by YuMe found 40.5 percent use online video to boost brand awareness. Meanwhile, brand engagement was the priority for more than one-quarter of respondents.
When measuring the success of their digital video ads, many surveyed professionals considered brand lift and percent of video completed determinant metrics. The survey, which was conducted in 2011, determined companies were planning to increase marketing budget allotments significantly for tablet and mobile phone ad efforts.