Commentary

Mobile Advertising Still A Work In Process

Based on a survey of client-side advertisers and agencies, this report explores the extent to which brands are putting mobile at the center of their integrated marketing activities.

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According to the ClickZ Intelligence Report about the State of Mobile Advertising 2016, many advertisers are still early on their journey towards mobile advertising sophistication. Only 13% of advertisers regard themselves as advanced, while 31% say they are intermediate. The remaining 56% describe themselves as beginners, though this figure is significantly lower in North America (42%) than in Europe (57%).

How Would You Characterize Mobile Advertising Efforts?

 

Client-side respondent

Agency-side respondent

Intermediate–carry out mobile advertising successfully but it is ad hoc and not properly integrated

31%

40%

Beginner– any mobile advertising is, at best, a bolt-on to desktop- focused activities

56

44

Advanced–take a mobile-first approach as part of an integrated advertising strategy

13

16

Source: ClickZ State of Mobile Advertising, April 2016

Only 6% of those who rate themselves at the beginner level regard the return on investment (ROI) from overall mobile advertising as ‘good’ or ‘excellent’, compared to 59% for companies who classify themselves as advanced.

Despite how quickly consumers have embraced mobile as a primary means of seeking out information during every stage of their buying journey, brands still aren’t using every tactic at their disposal to connect with audiences.

It is worth noting some regional differences here. Only 43% of Europe-based advertisers surveyed describe themselves as advanced or intermediate, compared to a healthier 58% in North America Companies continue to plough vast sums of money into traditional forms of advertising where the return on investment is still not fully understood.

How Would You Characterize Your Organizations Mobile Advertising Efforts In:

Mobile Activity

North America

Europe

Advanced – we take a mobile-first approach as part of an integrated advertising strategy

18%

14%

Intermediate – we carry out mobile advertising successfully but it is ad hoc and not properly integrated

40%

29%

Beginner – any mobile advertising we do is, at best, a bolt-on to desktop- focused activities

42%

57%

Source: ClickZ State of Mobile Advertising, April 2016

Social is a major focal point for mobile advertisers, with paid social the tactic most commonly employed by companies surveyed. More than two-thirds of client-side respondents say they are increasing their mobile-related investment on Facebook this year. The focus on social comes as brands ramp up their efforts to align their advertising activities with consumer behavior.

Are You Increasing Or Decreasing Your Mobile Investment In The Following Social Properties During 2016?

 

Client-side respondents

 

Increasing

Keeping the same

Decreasing

Facebook

68%

27%

5%

Instagram

50

41

9

LinkedIn

48

37

16

Twitter

40

46

13

Source: ClickZ State of Mobile Advertising, April 2016

46% of respondents agree that their ‘mobile advertising spend is in line with customer consumption of media through mobile’, but 34% disagree.

Mobile Advertising Spend In Line With Customers’ Consumption Of Media Through Mobile

Degree

% of Respondents

Strongly agree

14%

Somewhat agree

32%

Neutral

20%

Somewhat disagree

23%

Strongly disagree

11%

Source: ClickZ State of Mobile Advertising, April 2016

The research shows that lead generation and direct online sales represent the two most prevalent objectives of marketers using mobile media. Paid search is found to be the leading mobile channel for meeting these objectives, while also seen as the best channel for ROI.

How Do You Rate The Effectiveness Of Your Mobile Advertising For Addressing Different Stages Of The Marketing Funnel (Client-Side Respondents)

 

Effectiveness

Marketing Stages

Excellent

Good

Okay

Poor

Don’t know

Top of funnel - Creating brand awareness

12%

23%

33%

15%

17%

Middle of funnel – Deepening engagement with brand (consideration)

4

28

32

19

16

Bottom of funnel - Conversion (capturing user intent)

8

14

29

30

18

Source: ClickZ State of Mobile Advertising, April 2016

Advertisers who have seen the advantages of programmatic advertising on desktop are now reaping the benefits of a more data-driven and targeted approach through mobile. More than half of advertisers surveyed are increasing their budgets this year for programmatic mobile. Data management platforms continue to gain traction as advertisers seek to extract as much value as possible from their first-party and third-party data; 39% of advertisers say they are increasing investment in DMPs this year.

Increasing Or Decreasing Mobile Advertising Investment In The Following Areas During 2016 (Client-Side Respondents)

 

Increasing

Same

Decreasing

Programmatic display

56%

41%

4%

Programmatic mobile

52

42

4

Programmatic video

52

41

7

Mobile-specific ad networks

49

48

3

Ad exchanges

41

49

10

Demand-side platform (DSP)

40

53

6

Data management platform (DMP)

39

57

3

Third-party ad serving

37

50

13

Premium direct

25

59

16

Source: ClickZ State of Mobile Advertising, April 2016

Concluding, the report says that for all respondents, both advertisers and agencies, the most commonly cited significant challenge was a ‘lack of resources / budget’, with 53% of client respondents and 50% of agency respondents choosing this option. The report suggests, however, that perceived issues around resourcing and budget generally point to a lack of prioritization and focus as the true barrier to success.

For additional information from ClickZ please visit here.

 

 

 

 

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