Survey Finds 43 Percent of Marketers Not Increasing Mobile Advertising Spending Cite Low ROI From Mobile Campaigns as Biggest Deterrent
The Relevancy Group Survey Also Reveals That Marketers Are Dissatisfied With Click-Based Mobile Advertising and Prefer Email and Social Signups Over Click and Impression-Based Mobile Ad Units
BROOKLYN, NY--(Marketwire - Aug 2, 2011) - A new study conducted by The Relevancy Group in June 2011 and commissioned by Pontiflex, the industry's leading mobile and online signup ad platform, finds that lack of ROI from mobile advertising is the biggest deterrent for marketers when it comes to increasing mobile ad spending in 2011. Specifically, 43 percent of marketers who aren't planning to increase their mobile ad spending this year cite low ROI from mobile advertising as the number one reason that they won't increase spending. The survey also found that 93 percent of marketers said they would increase mobile ad spending if they realized a higher return on their investment.
Other survey results indicate that marketers are dissatisfied with click-based mobile advertising. The Relevancy Group survey found that 56 percent of Fortune 500 marketers are dissatisfied with or don't use click-based mobile advertising. Furthermore, 41 percent of marketers said that the most effective mobile ad campaigns are those where they pay for signups -- the email addresses and social networking handles of people who have opted in to receive communications from them.
According to eMarketer, mobile ad spending is predicted to reach $1 billion in 2011 in the United States. However, the Relevancy Group survey findings indicate that there is the potential for even more growth in the burgeoning industry.
"On mobile, click-based ad units aren't valid options for mobile marketers focused on increasing ROI," said David Daniels, CEO and Co-Founder, The Relevancy Group. "Mobile advertising requires a dramatic shift that is both focused on and respectful of the user -- honoring a good experience with meaningful engagement."
According to The Relevancy Group survey findings, marketers understand the importance of mobile marketing and want to invest more, but they are seeking a new approach. Marketers have identified three priorities for mobile marketing in 2011: * 73 percent state improving ROI for mobile campaigns is a top priority * 54 percent state increasing email subscribers is a priority * 53 percent state that building a social community is a priority
The Relevancy Group survey explains the rapid adoption of Pontiflex mobile signup ads. With signup ads, people can easily connect with brands and organizations from which they want to hear more. Signup ads enable people to enjoy special offers, receive newsletters, and support their favorite charitable causes. App developers keep people inside their apps and make real money. Advertisers run ads on top of apps and websites and pay only for signups. They can connect with real people -- instead of mere impressions or clicks -- and build robust email lists and vibrant social communities.
One brand that has seen success with signup ads is CafeMom.
"Moms are rapidly adopting mobile devices, so CafeMom has made mobile a crucial aspect of our marketing," said Kristina Tipton, Vice President of Marketing, CafeMom. "Pontiflex has helped us reach more moms who are looking for great relevant deals with our new daily deals site Mom.com. Having a mom actually sign up for our newsletter gives us the opportunity to deliver our great deals directly to her inbox every day, which is far more valuable exposure than a banner ad impression."
"Signup ads are native to mobile advertising," said Zephrin Lasker, CEO and Co-Founder, Pontiflex. "People have a new sense of control and meaningful experiences with brands. Developers can keep apps free with advertising that does not disrupt or annoy. And marketers can gain an entirely new level of brand engagement, relevancy, and, most importantly, real ROI."
In June 2011 The Relevancy Group conducted an online survey of 363 qualified marketing executives in the U.S. Survey participants were randomly selected and qualified based on their marketing role and knowledge about their marketing operations. Participants were marketers from business-to-business companies (B2B), business-to-consumer companies (B2C), and companies marketing to both groups. Survey respondents included people from all industry sectors, such as: retail, finance, manufacturing, high tech, advertising, media, consumer products, pharmaceuticals, non-profits, travel, sports, automotive, and others.
Pontiflex powers a new kind of digital advertising platform: signup ads.
With signup ads, people can opt in to hear from the brands they like without leaving a mobile app or website they're on. Advertisers pay only for valid signups -- never for wasted clicks or impressions.
Whether it's moms who join Kimberly-Clark's HUGGIES loyalty program, pet lovers who want to help animals with the ASPCA, or people who want personalized books from small businesses like Paper Hat Press, millions of people use signup ads every day to connect with their favorite brands and organizations.