Operators, brands and agencies all to blame, finds survey
Over-cautious brands and advertising agencies are responsible for stalling the growth in the mobile advertising market, according to mobile industry insiders.
At least that’s the findings of a survey by mobile events start-up Camerjam. The online survey, part of the build-up to Camerjam’s Mobile Advertising UK (MobAdUK) conference in London in June, found that nearly a third of respondents thought brands and agencies had been too slow buying into the idea of advertising on mobile.
Camerjam founder and mobile industry expert James Cameron, said: “The recent Volkswagen Tiguan campaign divided its budget between TV, print and online, allocating just one per cent of online spend to mobile. While it’s great that big brands are spending on mobile, the success of the medium depends primarily on greater budgets from the brands.”
Thirty one per cent of respondents to the survey which asked, “Why has mobile advertising been slow to grow?” blamed cautious brands. Other respondents said the fact that advertising must change for mobile (27 per cent) and operator greed (12 per cent) were the chief contributors to slow growth.
“More creative thinking is required to adapt advertising to mobile,” Cameron added. “Traditional broadcast advertising doesn’t work, and simply squeezing a banner onto a mobile screen has limited impact. Mobile advertising needs to offer a clear benefit to the user through free talk time or texts and access to free services and benefits from advertisers themselves.”
Operators also have a part to play. “Operators must make customer data accessible and useful to advertisers and significantly reduce the cut they take on traffic generated through their portals,” Cameron said.
MobAdUK speakers have also commented on the findings. Jonathan Mew, Head of Mobile at IAB UK, said: “Mobile is the most consumed medium in the daytime… (yet) still by far the smallest in terms of ad-spend” while MediaCom’s mobile manager, David Fieldhouse, said: “The advertising industry is ready and waiting to spend (on mobile) – the mobile industry needs to guide us, set standards and deliver the targeting that has long been promised.”
Each week up until MobAdUK on June 15, Camerjam will be asking a different question of mobile, advertising and brand experts. This week: Why are agencies and brands so cautious?
Check the poll results at www.amiando.co.uk/mobaduk or by following @jamescameron on Twitter, where you’ll also find up-to-the-minute links to all the latest news and thought from the mobile advertising industry as it happens. MobAdUK can be tracked using the hashtag #maduk
About MobAd UK
Endorsed by the IAB, MMA and AIME and sponsored by Alcatel-Lucent and adfortel, MobAdUK is a one-day conference designed to cut through the hype surrounding the mobile advertising industry, giving a clear representation of the state of the current market and highlighting key industry strategies to stimulate growth.
The event will also unveil the results of a UK specific research project carried out by EverySingle OneOfUs and Æneas Strategy Consulting & Management into the mobile advertising market and host the inaugural EverySingleOneOfUs Mobile Advertising Campaign of the Year Award 2008/9.
MobAdUK takes place on June 15 at the Old Cinema, Westminster University, 309 Regent Street, W1B 2UW. For details, comment and media passes contact James Cameron firstname.lastname@example.org or +44 (0)7940 749874.
Founded by expert conference producer James Cameron, Camerjam (www.camerjam.com) is an exciting new conference and events company at the forefront of the mobile industry. Under the Camerjam umbrella, industry experts, leading executives and high end analysts are brought together in stimulating environments to promote idea exchange, facilitate networking opportunities and drive industries forward.