Why so little support for mobile marketing ad spends in Australia?

Why so little support for mobile marketing ad spends in Australia?
SHARE
THIS


What best describes you?

Mobile marketing ad spends, particulary in the UK and USA, are on the increase.

While still significantly lacking overall as a medium in terms of matching budget allocations to eyeballs, in the UK our sister company 4th Screen Advertising is seeing sizable growth in budget.

For mobile in Australia however it's a slightly different story despite strong year-on-year growth. We’re simply not supporting mobile via spend as we could, or indeed should.

Mobile is often omitted by advertisers spending online, despite the massive shift in consumer behaviour towards mobile over the last few years. The now ubiquitous Mary Meeker internet trend research which defined worldwide digital use Vs ad spend is useful to illustrate this point: 

“People spent about 12 per cent of their time on mobile devices, which accounts for just 3 per cent of ad spend. This compares to 26 per cent of time spent on the Internet, accounting for 22 per cent of ad spend," it states.

In Australia, we estimate mobile marketing is sitting at just under 5% of total digital spend, even though we’re ranked fourth in the world for smartphone penetration (some reports say we’re actually 2nd).

Locally, we’ve still got some way to go before we catch up with our consumers. And while there is a gap overseas, in Australia it’s a canyon. In the UK for example, IAB reports that mobile accounts for 14% of the total digital ad spend – which is double the spend of the year before.

So what’s happening to result in less spend?

I think it’s the classic chicken and egg story. Mobile is still a new, often untried medium at home which means fewer examples of excellent campaigns and creative to showcase to clients. There are many great examples of course, but there are also poorly-executed performance campaigns displaying terrible creative in random environments with no contextual relevance whatsoever. Maybe this is hampering mobile’s advancement?

I’m not knocking performance per say, it can be done well and for companies or products without significant brand profiles who just need to communicate their message and generate click throughs, a performance buy is not only cost effective, it works. The point I want is make is the creative.

You only have to look at the numerous poorly designed banners floating around any of the latest buzz entertainment apps to know what I mean about the creative. This type of advertising is sending the wrong message about the capabilities of mobile and just might be the factor that has led to the huge gap between the millions frequenting the latest apps and mobile games and advertising spends.

But right now, this is actually good for the savvy advertiser. Great creative simply stands out. When the artwork becomes part of the app, it’s viewed like content. The opposite approach also works well. In line with some of the best creative formats coming out of the UK right now, the banner has grown up and evolved into a three dimensional explosion across a mobile screen and can now also run video. Gamified ad units are also here and really work to increase time spent immersed in brand messages. 

There are a constant stream of new developments that are likely to be significant in closing the gap. For example, better targeting can be deployed which locates user preferences and tastes in terms of content and delivers them similar ads. Such capabilities combined with high impact and engaging creative is helping to ensure brands invest more and more into mobile.

And this momentum is only set to continue. As new and better creative comes into play plus ever evolving mobile functionality 2014 will be the tipping point for mobile in Australia propelling the medium towards the millions of consumers waiting.

Pete Birch is the Managing Director of 4th Screen Advertising at Mobile Embrace – Australia’s largest premium mobile advertising network.

Please login with linkedin to comment

Latest News

The Advertising ID Consortium Welcomes New Platform Partners
  • Advertising

The Advertising ID Consortium Welcomes New Platform Partners

The Advertising ID Consortium – the open identity solution for the digital advertising ecosystem – has announced new platform partners. Since the Consortium’s announcement in May 2017, the founding members have established a governance framework and product specification that includes an open and standardised cookie and accessible people-based identifiers, delivered in a secure, privacy conscious […]

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand
  • Marketing

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand

Australian in-store music provider Marketing Melodies has announced an exclusive reseller agreement with Spotify-backed Soundtrack Your Brand for the Australia and New Zealand markets. Founded in Sweden in 2013, Soundtrack Your Brand was developed to kill bad background music. Its flagship solution, Soundtrack Business, is a music streaming platform licensed for commercial and public spaces. The […]

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia
  • Advertising
  • Marketing

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia

Customer acquisition firm Social Garden has become the first business in Australia to achieve Bronze status on Snapchat. Among the new benefits Social Garden will receive as a result of its Bronze status is access to beta versions of Snapchat data tools, such as the Snapchat Conversion Pixel, as well as being among the first […]

Hypetap Appoints Nuffnang’s Chris Morfis As GM
  • Marketing

Hypetap Appoints Nuffnang’s Chris Morfis As GM

Influencer marketing player Hypetap has made its second senior hire in less than a month, appointing Chris Morfis as the company’s general manager. Joining from influencer marketing provider Nuffnang Australia, Morfis will guide Hypetap’s growing team, providing strategic direction to accelerate the company’s growth, as well as leading operations and managing relationships with key partners. Morfis’ appointment will […]

On Air sign in a studio broadcasting via radio, podcast or wireless transmission.
  • Media

ARN Announces Departure Of Content Director & Radio Veteran

Australian Radio Network (ARN) has announced that Charlie Fox, content Director for WSFM and The Edge, and WSFM morning announcer Ron E Sparks, have departed. Fox has been with ARN since 2005, and Sparks joined WSFM in 2002. ARN national content director Duncan Campbell said the departure of Fox and Sparks are part of the […]

OMD Announces New MD For Melbourne
  • Media

OMD Announces New MD For Melbourne

OMD unveils new Melbourne MD, and it certainly wasn't among any of B&T's picks. Not that we were picking, mind you.

Sydney Festival Chooses Brightcove To Enhance Online Video Content
  • Media

Sydney Festival Chooses Brightcove To Enhance Online Video Content

Video cloud service Brightcove has announced that Sydney Festival has selected the platform to improve its user experience through online video content. Brightcove will do so by removing third-party branding and pre-roll ads, as well as adding autoplay functionality, ahead of the event in January. Leveraging the Brightcove video platform to host and publish video […]

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

Remember the old Palmolive soap ad that asked, "Don't wait to be told"? This is sort of similar, albeit sans any suds.

Opinion

by Peter Harris

Peter Harris
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]