Watch Out TV, Mobile’s On The Move

Mobile consumption outpaces TV

Independent mobile ad network, InMobi, reports that mobile media consumption has risen beyond that of television and PCs.  The facts, according to InMobi, are that “Americans spend 2.4 hours consuming media on mobile devices compared with 2.35 hours for TV and 1.6 hours on PCs.”  A couple of factors can be attributed to these figures.  Firstly, smartphones owners continue to be on the rise, accounting for nearly 50% of the consumers in the US.  Couple that with the amount of time spent in proximity to the device, which for many people is all of their waking hours.  Add on the reason consumers are adopting smartphones (media consumption), and you have the recipe for a leader.
What may be a more interesting stat, released in the same report, is that “59 percent of consumers say they are influenced by mobile ads compared with 57 percent who are influenced by TV ads.”  Let’s look at that for a second:

“The report finds that mobile ads now have the largest impact of all media channels on U.S. consumers’ purchase process, with 59 percent of consumers saying their purchases are influenced by mobile ads, followed by 57 percent influenced by TV ads,” said Anne Frisbee, vice president and managing director for North America at InMobi, Palo Alto, CA.”

“Perhaps the most potential lies in the finding that mobile advertising drives mobile buying, as m-commerce has grown 21 percent since Q4 2011,” she said. “Consumers are not only reporting to be comfortable with mobile ads, but they are listening to them, discovering new things and purchasing goods.”

Here is where mobile advertising is going to have to be smart.  Demographically, apps seem to be the ideal place for relevant, contextual advertisements.  When you have large consumption, plus relevant ads, you have a nice baseline for success like smartphones seem to be having.  But you can’t ignore another factor that may be in play, and that is curiosity – part of the adoption curve.  Smartphone users have only been around in this app-filled world for a handful of years.  We can look at the display advertising lifespan as the perfect corollary to mobile ads.  When banner ads began, consumers were curious and had no hesitation to clicking on ads.  That has changed, and the savvy advertiser knows that banner ads hold much of their value today from a branding standpoint, as opposed to direct response.

So while this is great news for the mobile ad tech industry, I still think mobile advertising will have to get over two major hurdles in order to continue to thrive.  The first will be keeping consumers from developing “Mobile Ad Blindness”.  Right now it’s safe to say many smartphone users don’t know how to even exit mobile ads.  That will change rapidly.  Secondly, mobile will have to firmly tackle attribution, which still hasn’t been solved in the display space.  It’s great that a survey shows 59% of consumers ‘say’ they are influenced by mobile ads, but what do the actual actual behaviors reveal?

Advertisements

~ by danjsilver on August 17, 2012.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: