- Posted by Timur Taepov
- On March 13, 2015
- Columbia Business School, Mobile Advertising
Time being spent on mobile has seen a dramatic surge during recent years and this is especially seeing an upward trend in the developed world. As a matter of fact the time being spent on mobile screens has seen four times increase over four years. And this increase is for on non-voice time spent on mobile. On average, users are spending over an hour while surfing on their mobile screens. And advertising has taken note of it. With this rise in the time being spent on mobile, has come the massive increase in spending in advertisements on mobile. This growth rate in mobile advertising spend is especially very steep in case of developed countries like United States, Canada, South Korea and Japan.
However, in case of mobile advertising there is a clear discrepancy. The coherence between the amount of time being spent on mobiles and the amount of advertisement flowing to mobile media is weak. Whereas in the case of newspapers, it is reverse. Though the time being spent reading newspapers is decreasing, the advertisement dollars are still flowing strong to the print media. A probable reason is that the newspapers media is producing results whereas this is not happening in case of mobile advertising as effectively.
There are mainly two types of mobile advertisements. Display advertising or pay per click mobile advertising. Advertisers like clicks because these can lead to conversions and results. However, conversion rates from clicks to purchases are very low in case of mobile advertising when compared with other media.
A research study, in which more than 40,000 people participated, recently studied the dynamics of mobile advertising with focus on the impact, purchase triggers, awareness, and preference or purchase intentions. The study reveals that mobile advertising produces better results in case of high value product categories like homes and car. These are the products with high involvement. Whereas the results are not as convincing in case of hedonic products and services like travel, hoteling etc. The above results were concluded on the basis of two questions that were asked from the people forming sample of study:
- Overall opinion of the product after being exposed to mobile ads and;
- Purchase intentions.
The outcome of the study can be summarized as under:
- Use mobile campaigns with high bandwidth and in conjunction with campaigns on other media;
- Not substitutes but only can complement the other advertising vehicles;
- Role is to reinforce high bandwidth campaigns and as a reminder of other advertising campaigns.
Watch the video below:
ABOUT: Video by Official Columbia Business School Youtube Channel