Study: Mobile Ad Budgets On The Rise, Clients Find Branded Apps Most Exciting

Spurred by interest in formats like branded apps and mobile video, 82% of brands, agencies and other companies plan to boost mobile ad budgets in the next 12 months, according to a new study by MediaPost’s Center For Media Research and digital research firm InsightExpress.

Four in 10 plan to increase spending by up to 30% and three in 10 by 31% or more in the next year. Fifteen percent expect no change, and another 3% plan to cut mobile ad spend. Half of mobile ad dollars currently come from online budgets, 35% from cross-platform buys, 27% from funds specifically earmarked for mobile and 8% from TV budgets.

The study projected that 43% of mobile spending in the future will come from designated mobile budgets as the sector matures.

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.

Following closely behind apps, cited by 47% as what clients find most exciting in mobile, were mobile video (44%) and mobile coupons (39%). A separate study released last week by TubeMogul and Brightcove found that more than half of media companies plan to roll out ad-supported mobile video in the next six to 12 months.

When it came to rating return on investment, however, the less glamorous formats won out. More than a third (36%) cited mobile coupons as the most effective form of mobile advertising, followed by lowly text links and banners, at 26% each.

Among the 53% of those surveyed who have not been involved in mobile campaigns, 59% expect to do so in the next year and 30 in the next six months.

In a section focused on agencies, the MediaPost study found that more than half (57%) had been involved in mobile campaigns, 44% none, and 17% in four or more. The majority of agencies needed three or more weeks to develop and execute a mobile campaign, with 37% taking more than four weeks. Twenty-one percent took only two weeks.

Internal departments most heavily involved in mobile efforts include creative (78%), account services (69%), media services (67%) and strategy (67%). Least involved were operations (19%) and sales (21%).

Agencies typically looked for outside help in areas including technology (52%), mobile expertise (23%) and production (21%). Two-thirds of ad firms developed completely new creative, while half have also repurposed existing online creative for mobile projects.

Of agencies that have not run a mobile campaign, the majority (71%) expect to do so in the next 12 months, and 22% in the next three months. But 29% don’t see mobile becoming part of their business for the forseeable future.

The study, conducted with MediaPost’s subscriber base, took place from from April 19 to April 20, 2010, with 550 people completing the survey. Of that total, 352 had planning, buying, or approving responsibility at their companies.

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Provided By: MediaPost News

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