Mobile ad budgets grew 142 percent between 2011 and 2013
Posted on Oct 2, 2013 by YuMe
With mobile devices enabling consumers around the world to interact with brands through apps, display ads and mobile video advertising, it's no wonder marketers are focusing more on how their target audiences use smartphones and tablets.
According to the Interactive Advertising Bureau's "Marketer Perceptions of Mobile Advertising – 2013," brand marketers' mobile budgets swelled 142 percent between 2011 and 2013. The report details the findings of a survey of representatives at 300 companies that use mobile advertising and explains the portion of marketers who oversaw mobile budgets greater than $300,000 grew from 7 percent in 2011 to 32 percent this year.
Among the benefits marketers experience from investing in mobile advertising, increasing loyalty retention proved to be the most popular, as nearly half respondents stated it provides them a significant and sustainable competitive edge. Forty-five said they same about mobile's ability to facilitate transactions and improve customer service. Another benefit cited was enhancing brand equity.
The IAB noted that as consumers increasingly rely on multiple devices simultaneously and throughout the day, brands that wish to connect and resonate with audiences must maintain a presence on multiple channels, including television, digital search, social media and more. In fact, according to the report, three-quarters of marketers surveyed said multiscreen marketing is important or very important to their strategy. Pre- and mid-roll mobile video ads are key tools brands rely on to maintain relevancy in consumers' minds. Nearly 1 in 5 respondents to the survey said they use their budget for mobile video advertising.
While smartphones have dominated the handheld device market in multiple countries, IAB found tablets are commanding more attention from marketers. The portion of respondents stating tablets are a priority gadget grew from just 31 percent in 2011 to 51 percent 2013. Additionally, 75 percent of marketers surveyed in 2013 said they intend to increase their tablet use in the next two years.