Mobile AUDIO Advertising
Mobile advertising is well on its way to being an integral part of the marketing conversation for most companies. The fact that so many people have smartphones and are somewhat addicted to them is enough to make any marketer giddy with excitement.
In 2012, $10 billion in sales were made through mobile channels. That’s expected to rise to $30 billion by 2016. In addition, 55 percent of smartphone owners use their smart phones to research purchases. Those numbers have mobile app developers and advertisers salivating. But they need to focus on real opportunities and not false hopes. (source)
Mobile audio features within applications represent an enormous and largely unrealized opportunity for both mobile developers and their brand partners. With more than a million apps in the app stores, only a fraction offer premium audio experiences and even fewer incorporate audio advertising.
Until now mobile radio has failed to take advantage of the inherent advantages of smartphones – Internet access, GPS, connectivity, reach and personal ownerships. Imagine being able to target customers with offers specific to their demographics, current location and time of day. Such flexibility in targeting allows for a very high ROI.
For e.g.: Imagine you have had a busy morning at work. You go outside to get your lunch, listening to radio on your phone you are walking down the high street, confused what to eat today as there are so many options right in front of you and just when your favourite song finishes you hear an audio advert “Confused about what to eat for lunch today?, why don’t you come to Pizza Hut and try our new lunch menu? “ And then you realise that you are standing right outside a pizza hut store.
Exaget enables broadcasters to connect with their listeners like never before, targeting them with relevant content based on location. We deliver high response rates and returns for clients, without expensive retrofitting. Through our innovative geo-location and demographic targeting technology, we bring you closer to consumers by replacing regular radio commercials with targeted messages specific to the individual listener. This is done in real time, so it is incredibly effective.
With listeners tuning in from around the world, investing in better targeting has never been more essential (or lucrative). With your own branded channel on our UTuneMe app, or by integrating our clever Exaget technology into your existing app, you can start getting closer to your listeners right away.
Savvy developers and companies who experiment with this emerging trend will be rewarded well beyond those who continue to view the smartphone as just another screen.
If you found this week’s update interesting feel free to join our mailing list or donate a share, like or tweet. Subscribe to our newsletter to get our update into your mailbox. If you are a broadcaster, or advertiser and are interested in learning how targeted audio advertising can work for you get in touch.
Exaget Team
Twitter – @Exaget
Facebook – Exaget
Growth of UK Mobile Ad Spend
October 30, 2013
Growth of UK Mobile Ad Spend
The IAB (Internet Advertising Bureau) has been working with PwC (PricewaterhouseCoopers) since 1997 to survey the value of the online advertising market. Their figures have become the industry standard for measuring advertising spend. 2008 was the first year that IAB and PwC surveyed the UK mobile market Ad spend.
2008:
The research found that in 2008 UK Mobile ad spent accounted for £28.6 Million. This was a year on year (YOY) growth by +99.2% (2008 vs 2007).
IAB and PwC forecasted further growth in mobile advertising with decline in traditional media in 2008.
2009:
In 2009 things started getting interesting as even after UK’s GDP dives to – 6% YOY in Q2 2009, UK showed the fastest growth in smartphone market, with 24 % of the UK using smartphones was a YOY growth by +70% (2009 vs 2008). 2009 saw the biggest decline in overall ad spend since records began.
The research found that in 2009 UK Mobile ad spent accounted for £37.6 Million despite worst year on year record for advertising. This was a YOY growth by +32.2% (2009 vs 2008) (like for like).
“Despite the tough economic climate in 2009, we have seen many brands spending on mobile for the first time indicating the growing importance of this channel in reaching a large engaged consumer audience with the right message in the right place and at the right time” – Ed Laws, Director, Yahoo! mobile marketplace, EMEA.
2009 gave a positive indications for 2010 and still plenty of room for growth.
2010:
In 2010 UK had a mobile revolution with smartphone growth by 58%. With more engaging adverts, Geo-Location and brands building their mobile strategies. Mobile ad spent in 2010 accounted for £83 Million. This was a YOY growth by +115.9% (2010 vs 2009) (like for like).
Alex Kozloff (Mobile Manager, IAB UK) predicted that “2011 is the last chance brands have to do mobile before they are too late.”
2011:
With 5.5million mobile internet users in 2011 and 24% out of them buying via mobile, mobile advertising turned out to be an essential platform for marketing. Mobile ad spent in 2011 surpassing all the forecasted numbers accounted for £203.2 Million. This was a YOY growth by +157% (2011 vs 2010) (like for like).
There is not much change in the breakdown (%) when we compare 2011 and 2010. Since 2010 advertisers have given more emphasis on mobile search adverts as 13.4% of paid search clicks came from mobile. Larry Page (CEO,Google, 13/10/11) said that “We’re also seeing a huge positive revenue impact from mobile, which has grown 2.5 times in the last 12 months to a run rate of over $2.5 billion.”
2012:
In 2012 UK’s Digital ad spend which includes Online, Mobile and Tablet all together accounted for £5.416bn which was an increase of £607m (+12%) YOY. Out of the total digital ad spend, Mobile ad spend was £526m, which was a YOY growth of 148% (2011 vs 2012 like for like)
The Total mobile ad spend (£526m) breakdown showed similar figures of that of 2011. This stability of breakdown suggest that the advertisers had found a formula for an effective mobile advertising campaign.
H1 – 2013:
In the first half of 2013 the total digital ad spend has reached £3.014bn, this is 17.5% increment compared to first half of 2012. Total mobile ad spend in H1 – 2012 was £188.1m. In H1 – 2013 it has already reached £429.2m which is a YOY growth of 127% (H1 – 2012 vs H1 – 2013)
Mobile ad spend is now 14% of the total digital ad spend. It is predicted that Mobile to reach nearly £1 billion and 16.5% of digital ad spending this year in the UK. (Source)
The growth in mobile advertising spend in the UK shows no signs of abating, and should represent nearly one-quarter of display spending and more than one-fifth of search by 2014, according to estimates from media investment management firm GroupM. (Source)
Methodology used for this survey:
If you found this week’s update interesting feel free to join our mailing list or donate a share, like or tweet. Subscribe to our newsletter to get our update into your mailbox. If you are a broadcaster, or advertiser and are interested in learning how targeted audio advertising can work for you get in touch.
Exaget Team
Twitter – @Exaget
Facebook – Exaget