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According to Juniper Research, mobile advertising will not be exempt from the recession. As a matter of fact, constraints on budgets imposed by the global economic downturn had resulted in an increasing migration of adspend from above the line to below the line channels.
On one hand, companies realize that the need for engagement with the consumer is increasingly going through a mobile phone these days, and quantifiable ROI is certainly appealing to brands.
However, this doesn’t mean mobile advertising is hitting prime time anytime soon — even by 2014, it would only account for up to 1.5% of total global adspend.
While a number of major brands had made relatively large investments in the mobile platform, it’s still a change when compared to the overall advertising market.
According to the report author Dr Windsor Holden, “These investments still form only a small proportion of a brand’s total advertising budget: Regardless of mobile’s advantages — its personal nature, the facility for highly targeted advertising — advertisers will not commit more budget until they perceive that the audience for their advertisements has reached a critical mass.”
Other findings from the report include:
- Mobile Internet will become the most popular mobile delivery channel for advertisers in 2009, and will attract the largest proportion of mobile adspend throughout the forecast period
- Mobile Cost Per Clickthrough (CPC) and Cost Per Mille (CPM) rates have fallen sharply over the past year in large part due the negative impact of the economic downturn
- Mobile advertising response rates remain substantially higher than those in other media
More information about the report is available from Juniper’s website.
About The Author
Dusan Belic
Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.
