Mobile Ad Budgets Ballooning

Mobile ad budgets are growing by significant amounts, according to a recent study conducted by MediaPost’s Center for Media Research, in conjunction with InsightExpress.

According to the study, 82 percent of brands, agencies and other companies have plans to boost their mobile ad budgets in the next 12 months. Of this group, four in 10 plan on boosting their mobile ad spending by up to 30 percent, while three in 10 plan on boosting their spending by 31 percent or more.

Meanwhile, 15 percent expect no changes in their mobile ad spending, while 3 percent actually plan on cutting back on this spending.

MediaPost also relays that half of mobile ad dollars come from online budgets, while 35 percent come from cross-platform buys, 27 percent come from funds earmarked specifically for mobile spending and 8 percent comes from television budgets.

The study expects that 43 percent of mobile spending will come from designated mobile budgets as the industry matures.

Apps are the most exciting part of mobile, according to 47 percent of respondents.

“Given the enthusiasm for mobile advertising unleashed by the iPhone and the accompanying App Store, it’s not surprising that branded apps are what clients find most intriguing about the emerging ad category, according to survey respondents spanning agencies, brands, publishers, technology vendors, retailers and other types of organizations,” MediaPost notes.

Mobile video was close behind (44 percent), followed by mobile coupons (39 percent).

Nevertheless, 36 percent of respondents said mobile coupons were the most effective form of mobile advertising when it came to return on investment, followed by text links and banners with 26 percent, respectively.

Fifty-three percent of respondents said they have not been involved in mobile campaigns, and 59 percent of this group expects to get into the game in the next 12 months.

For agencies specifically, 57 percent had been involved in mobile campaigns. Internal departments helped the most with mobile efforts, according to 78 percent of respondents, followed by account services (69 percent), media services (67 percent) and strategy (67 percent).

Agencies looked for outside help for technology (52 percent) and mobile expertise (23 percent).

Source:

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