Mobile Ads Drive Purchases on PCs
July
research from Nielsen indicated that 22% of US smartphone
users had made an online purchase via PC after seeing a mobile ad, more than
quadruple the percentage who had purchased on their phone.
45%
of 13- to 17-year-olds surveyed said they thought location-based ads were more
useful than traditional ads, the percentage hovered around one-third for respondents
ages 18 to 44 and dropped significantly among those over 45. It’s not
surprising that older users might be more cautious about a form of advertising
often seen as intrusive or insecure, but a failure to see location-based
offerings as useful does not bode well for direct-response mobile advertising.
Still,
as offerings continue to get more sophisticated and marketers increase their
fluency with mobile targeting and relevance, ad spending on mobile devices will
rise rapidly. eMarketer estimates such spending in the US will reach $2.6
billion this year, rising to nearly $11 billion by 2016.
Hispanics
Embrace Mobile, Raise Purchasing Power
- Hispanics continue to outpace non-Hispanics with the adoption of smartphones -- an increase from 43% in 2010 to 57% in 2012, compared to an increase from 36% in 2010 to 46% in 2012 for non-Hispanics.
- Hispanics agree that they are more likely to visit branded sites and retail stores, compared to just 24% of non-Hispanics.
The
Touchscreens Have It: IAB Says Tablets, Smartphones Driving Big Returns On Ads
Size matters. Between tablet and
smartphone users, the IAB found that those on tablets are actually more
engaged in advertising. When asked if they engage with ads more than once a
week — that is, click on an ad for more information — 47 percent of tablet
users responded yes, compared to 25 percent of smartphone users. Tablet users
were also more likely to “take action” on the ad (that could mean buying
something, downloading something, filling out a survey, or visiting another
site): 89 percent of tablet users took action versus 80 percent of smartphone
users. Here you can see that both numbers are quite high.
The medium is the message. Among
smartphone users, 47 percent of smartphone users say they “never” interact with
mobile ads, compared to just 23 percent on tablets.
And
70 percent of respondents in the survey said they viewed their smartphones as
essential objects in their lives, like keys and wallets. Interestingly, that’s
the same percentage of people who viewed their tablets as primarily
entertainment and media hubs.
**********
Mobile Rich Media To Top $7B In 2015
- Increased app usage globally will help increase spending on in-app advertising from $2.4 billion this year to $7.1 billion by 2015
- “Mobile advertising gives marketers the chance to reach consumers on a more personal level than any other type of advertising,” said Juniper analyst Charlotte Miller. “Creating immersive and entertaining experiences to attract the attention of the consumer is essential for marketers wanting to take advantage of the massive increase in app usage.”
- Estimated U.S. mobile ad spending at $1.6 billion in 2011.
- Mobile advertising overall will triple by 2017, with 60% of spending coming from North America and Western Europe
Mobile
Shopping For A Car
- 50% of respondents expressed interest in using their mobile phone to research buying or leasing a vehicle.
- When in the market to buy or lease a new vehicle, nearly half (47%) of consumers said that they would find mobile advertisements containing deals or offers most valuable to them.
Information Most Valuable in
Mobile Auto Ads (According to US Auto Owners/Shoppers; % of
Respondents)
|
|
Info in Ad
|
% of Respondents
|
Ability to sign up for deals/offers/future communications
|
21%
|
Features and benefits of vehicle/video
|
21
|
Deals and offers
|
47
|
Ability to book a test drive with local dealer
|
12
|
Source: Mojiva Mobile Audience
Guide/Insight Express, May 2012
|
|
- 21% of consumers are open to mobile ads that provide features and benefits of the vehicle and/or the ability to sign up for deals, offers and future communications most valuable
- 57% of consumers would browse a website or play a game as a result of seeing a mobile ad
- 38% of consumers would request more information as a result of seeing a mobile ad on their phone
Actions Taken After Viewing
Mobile Ad (% of Respondents; US Mobile Phone Users)
|
|
Action
|
% of Respondents March 2012
|
Browse website
|
57%
|
Play a game
|
57
|
Listen to music
|
44
|
Download mobile app
|
43
|
Request more information
|
38
|
Watch a video
|
36
|
Redeem or download coupon
|
35
|
Purchase a product
|
24
|
Tap to call
|
13
|
Source: Mojiva Mobile Audience
Guide/Insight Express, May 2012
|
|
Amy
Vale, Vice President of Global Research and Strategic Communications for Mojiva
says “... not only do a third of consumers surveyed plan to purchase a vehicle
within the next 12 months... more than half of them would use their mobile
devices as part of their research process... “
Tablets Reaching "Critical Mass," Tablet Strategies A Must
·
1 in every 4 smartphone owners using tablets
during the three-month average period ending April 2012.
·
Tablet users were nearly three times more likely
to watch video on their tablets compared to smartphone users on their phones,
with 1 in every 10 tablet users viewing video content almost daily on their
devices.
·
In April 2012, 16.5% of mobile phone subscribers
used a tablet, representing an increase of 11.8% in the past year.
·
Growth in market penetration was even more
apparent among the smartphone population with nearly 1 in 4 using a tablet
device in April, an increase of 13.9% in the past year.
·
A lower 10.4% of feature phone owners use a
tablet, suggesting that smartphone ownership is highly predictive of tablet
adoption in the current market.
·
eMarketer projects that tablet penetration will
reach 29.1% of Internet users by the end of this year, while growth will fall
off to 11.9% by 2015.
Demographics
·
A demographic analysis of mobile device
audiences indicated that tablet and smartphone audiences closely resemble one
another in terms of gender composition, with tablet users just slightly more
likely to be female than smartphone users. However, the age composition of
audiences showed that tablet users skewed noticeably older than smartphone
users. For both devices, the heaviest overall audience concentration was
between the ages of 25-44.
·
Compared to smartphone owners, tablet users were
28% more likely to be in the 65 and older age segment, and 27% less likely to
be age 18-24.
·
Tablet users also skewed towards upper income
households, likely a function of the high price point of these devices still
considered a luxury good to many consumers. Nearly 3 in 5 tablet users resided
in households with income of $75,000 or greater, compared to 1 in every 2
smartphone users.
·
Those most likely to use a tablet will remain
between the ages of 25 and 44, among whom around one-third of the total
population will use a tablet in 2012.
·
eMarketer estimates more than half of tablet
users this year to be men (54%), but by the end of the forecast period the
gender split is expected to be even. Asians, at 26.2% penetration in 2012, are
the most likely racial or ethnic group to use a tablet, followed by Hispanics,
at 24%. This compares with 21.4% of whites and 21.5% of blacks.
Tablet Audience Nearly 3x as Likely to Watch Video as
Smartphone Users
·
A closer look at content consumption on tablets
found that more than half of tablet users watched video and/or TV content on
their device in April 2012, compared to just 20% of the smartphone audience
·
Not only were tablet users more likely to watch
video, but they were more likely to view video habitually with 18.9% of tablet
users watching video content at least once a week, and 9.5% watching video
nearly every day on their device. Of those viewing video at least once during
the month, 1 in 4 (26.7%) paid to watch content
Tablet
Users Watching More Video than Smart Phone Users
- Depending on the mobile app, users watched from 50% to 175% more videos on tablets than smartphones
- Because smartphones are far more widespread than tablets to date, however, they still account for the vast majority of time spent watching mobile video: 79% versus 21% for tablets on premium properties.
- Adding social media buttons to in-stream ads helped increase the average engagement rate (defined as any type of interaction) from 0.9% to 1.48%.
- The report also highlighted the benefits of combining different ad formats in a campaign. Pairing full-page mobile ads with in-stream video ads, for instance, increased average engagement from 9.3% to 10.7%, while adding video ads to a banner campaigns on tablets lifted interaction rates from 0.6% to 0.8%. Full-page ads on tablets had a 20% interaction rate -- more than twice that on smartphones.
- Nielsen data showing that mobile subscribers in the fourth quarter of 2011 watched mobile video an average of four hours and 20 minutes a month.
- 33.5 million watch video on their phones, up 35% from 27.4 million a year ago
Perhaps
the boldest prediction: “100% of campaigns will be integrated everywhere. All
signs indicate that campaigns that reach across screens - TV, desktops, smartphones
and tablets — are more effective.” Mohan cites a September 2011 joint study by
Google and Nielsen Multi-Media Labs in which users who saw a multi-screen Volvo
campaign had a 24% higher brand recall than those who viewed Volvo ads on TV
alone. “We’re increasingly seeing increased interest in buying across screens
on our own platforms, like DoubleClick for Publishers Mobile, where we’ve seen
the number of impressions delivered double every quarter.”
Travel
Advertising Rises On Mobile
- Booking agents and sites accounted for more than half (57%) of the spending, with hotels and resorts a distant second, at 18%, followed by airlines (11%), tourist attractions and destinations (9%), regional transit (3%) and rental cars (2%).
- People remain active on mobile devices while on vacation. Almost everyone (85%) with smartphones or tablets uses their devices to check personal email, while about two-thirds use GPS and maps, and keep in touch with people back home.
- Nearly as many (62%) search for local restaurants and attractions, and 58% post photos or status updates to social media.
- App downloads are typically the most common type of post-click action advertisers try to drive through mobile ads, with 42% of campaigns on the network, including an app download option. That feature is even more prevalent in travel-related campaigns, the majority (59%) of which push app downloads.
- “With 16 million consumers booking travel on their mobile devices, and 36 million researching travel options, travel brands have good reason for wanting a persistent presence on consumers’ mobile devices,”
- 29% of those who have made a purchase on their smartphone have booked hotel rooms, and 24% each have ordered car rentals or bought airline tickets directly from their devices.
Mobile Ads Kick-Start 20% Of M-Commerce Activity
- Mobile advertising was the second-most-common factor prompting m-commerce activity (22%) after citing mobile as “the easiest way” to do things (24%) like find product information or a store location, buying physical or digital goods or checking status on an auction site.
- Other top reasons for turning to m-commerce were “something I planned to do” (21%), boredom/filling time (21%), finding the best deal (20%) and researching for a future purchase (16%).
- Researching product information was the most popular m-commerce task, with 28% doing so, followed by searching for a store location (18%), price comparison (12%), digital purchase (9%), physical purchase (5%), checking status on auction sites (4%), and using mobile coupons (3%).
- Apps and other digital goods are the most common type of purchase, with about three-quarters (76%) of m-commerce users doing so through iTunes, Google Play or other digital outlets.
- Nearly half (47%) of mobile commerce actions took place at home and within the home, and 61% take place in the living room.
- More than half (53%) said they had stopped an in-store purchase as a result of using their phone. About one in four (38%) found a better price elsewhere, 30% found a better price online, and 21% found a better item online, among other reasons.
- Taking a closer look at advertising, the survey showed that 70% view mobile ads as a “personal invitation” from brands, while 30% saw them as a “personal invasion.”
- Half (51%) of those who saw ads as an invitation wanted ads they clicked on to allow them to browse the brand or company's broader product offerings. The same was true for 40% of respondents overall.
- Asked about the ads targeted to them based on anonymous data, such as location and age and gender, 30% said they liked ads that are relevant, and 27% said they are okay -- but only if permission-based. When asked how mobile ads could be more relevant, people said they were wiling to share information about location, favorite brands, and sites they have visited -- but only in the range of 24% to 28%.
- As far as future m-commerce enhancements, nearly a third (31%) said they would like to receive alerts about products they want. Roughly the same percentage would like to pay for a purchase by phone and pick it up in a store, have a better browsing experience, and participate in a mobile loyalty program that includes paying by phone.


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