In a sign that mobile marketing is growing, both agencies and brands expect to this year increase spending on mobile ads.
Agencies reported that in 2010 client spending on mobile ad budgets will average $260,000, compared to $143,000 in 2009, an 80% increase in spending, according to a new survey from DM2PRO.com, in collaboration with Mojiva.
And when asked to estimate a specific percentage by which their client spending would increase, respondents projected a more modest 65% for 2010.
On the brand side, managers indicated that mobile ad spending would more than double, from an average $269,000 in 2009 to $679,744 in 2010.
Some 23% of brand managers indicated that budgets would increase between 10% and 20%, followed by the next popular choice, 5%. The same number of managers were more optimistic, predicting an increase of at least double and in some cases more than triple their 2009 mobile spending. Ten percent said their mobile budgets would more likely decline.
Budgets are increasing as new formats emerge that can be expanded across multiple platforms and handsets. Add to that brands are getting encouraging signs from small budget tests and campaigns they have run giving them the benchmarks they need to drop more money on mobile campaigns to see if they can further improve results.
Just about half of mobile publishers support their efforts with advertising or advertising and subscription sales (30.6%). More than 67% sell mobile separately, but for an overlapping 65%, mobile can be either bundled or included as a value-add in other media sales. However, only 25% of mobile publishers sell out more than half their inventory.
The number of marketers integrating mobile advertising for the first time continues to rise. More than 20% of these newbies said they would spend more than 10% of their total 2010 marketing budgets on mobile.
So where’s the money coming from?
Some 32% percent said, “incremental spending,” while the next most popular choice of funding was from online budgets at 26%.
The survey polled tens of thousands of digital marketing and media professionals who subscribe to digiday:DAILY or have attended digiday conferences. The 985 respondents represent brands, agencies, publishers and technology innovators who comprise the digital advertising industry.
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