According to the Millward Brown AdReaction 2012 Report, 60% of owners consider their smartphone or tablet indispensable, and nearly two-thirds feel that mobile devices make them more efficient. Morgan Stanley research forecasts an audience of 1.5 billion smartphone and tablet users by mid-2013, the opportunity for mobile marketers is indisputable.
With global mobile ad spending projected to triple to $18.6 billion by 2015, and against the backdrop of a forecasted 1.5 billion smartphone and tablet users by mid-2013, a number of findings from the study emphasize the opportunity:
But audiences differ, says the report, and have varying needs and expectations:
The study found that the majority of consumers tolerate ads on mobile websites and in apps as long as the sites and apps are free. On average, however, across the countries measured, just 23% of global smartphone or tablet users are favorable toward mobile ads, compared with 36% for online display ads, 47% for newspapers and 51% for TV.
Willing Acceptance of Apps And Ads for Freebies (% of Segment) | ||
Segment | Ads in Apps if App Free | Ads on Mobile if Website Free |
Overall | 30% | 28% |
Sophisticates | 48 | 50 |
Effectives | 34 | 35 |
Pragmatists | 68 | 57 |
Source: MillwardBrown, November 2012 |
On a slightly more positive note for marketers, 38% of consumers reported willingness to share location in return for more relevant services and offers, trading privacy for useful content or incentives and opening the door for brands to engage in ways unique to mobile marketing.
Preferred Deliverables to Mobile | |
Preference | % of Respondents |
Deals & Coupons | 44% |
Free tools | 27 |
Interest based information | 27 |
Location based info | 25 |
Latest product news | 18 |
Fun features | 15 |
Source: MillwardBrown, November 2012 |
Duncan Southgate, Global Brand Director for Digital at Millward Brown, notes that “... (the) AdIndex for Mobile norms show that mobile ads are approximately four-times more effective than online ads at increasing brand awareness, message association and purchase intent...”
But, according to the study, only 11% of smartphone users and 16% of tablet users are favorable toward mobile advertising, a stark comparison to favorability rates of other media, including 30% for magazines and 27% for TV, observes the report.
Attitudes toward mobile ads are more positive in emerging markets including Nigeria and Kenya (both 48% favorable), India (43%) and South Africa (30%), largely because mobile devices are even more central to consumers’ lives in these markets. Globally, attitudes toward ads on tablets are more positive (29%), as are attitudes towards social media news feeds on mobile devices (35%)
eMarketer predicts global spending on mobile ads will triple to $18.6 billion by 2015. The challenge for mobile marketers is to optimize the effectiveness of this ad spend. This can be achieved by demonstrating greater respect, and delivering the following, says the report:
According to respondents, a good mobile website includes these features (% of respondents):
This study addresses key questions facing marketers in considerable detail with charts and graphs, and the PDF file may be accessed here.