eMarker is reporting huge growth in the amount of time people spend consuming media on their mobile devices. While this news isn't exactly shocking, what is surprising is the lag in mobile advertising, which has yet to catch up with this shift in consumer behavior. Mobile's share of average media consumption time has increased from 3.5% in 2009 to 11.7% in 2012. Over this same period, the share of mobile ad spend has increased from .3% to just 1.6%.
So why are advertisers spending only 1.6% of their budget on mobile while consumers spend 11.7% of their time there? As we discussed in class, mobile advertising is challenging. There is extremely limited screen space, so it is difficult to be effective advertising on mobile without disrupting the user experience, as Facebook and it's investors have discovered. The ad standards that dictate the online market don't apply well to mobile, so advertisers have to re-think their process on how to best reach customers. Additionally, the popularity of apps means mobile users are circumventing their browsers and search tools to reach their favorite sites, reducing the effectiveness of SEM.
Mobile advertising will increase drastically over the next few years, but it's unclear when and how it will get more effective. Until then, expect to see more annoying pop-over ads as companies try desperately to reach consumers.
Full link: http://www.emarketer.com/Article.aspx?R=1009431&ecid=a6506033675d47f881651943c21c5ed4
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