• by Jack Loechner , Staff Writer @mp_research, April 20, 2016

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.

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%).

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.

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.

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

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.

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.

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.