Ad Agencies To Boost Their Mobile Ad Services

The mobile ad market is quickly maturing. Businesses are no longer in the experimentation phase with this rapidly growing channel. Instead, merchants are focusing on the best way to reach consumers via mobile devices.

The most recent release from STRATA provides great intelligence on the experience of advertising agencies in this sector. Last year, when businesses contacted agencies about developing mobile campaigns, the focus was on display advertising (63%) and SMS advertising (25%). But this year the numbers have changed:

  • Display: 37%
  • SMS: 25%
  • Other: 19%
  • Application: 7%
  • Location-​based: 7%
  • Rich media: 5%

Analysts point to the rising interest in location-​based campaigns as a new trend. Last year, that format accounted for 3% of advertising that agencies created for their clients. This year, location-​based advertising is as high as 7%.

Regardless of trends, David Berkowitz, senior director of emerging media and innovation at digital marketing agency 360i, cautions marketers and agencies about focusing too heavily on the latest technology during ad campaigns. He reminds us that “SMS often gets overlooked, but the vast majority of users of all ages are texting,” and this format has great potential to reach users. While that may be true, eMarketer analysts believe that SMS will  ‘lose importance’ going forward. As more consumers purchase and engage with smartphones, new emphasis will be placed on mobile display and search.

In addition,  the mobile device and operating system market is becoming more fragmented in 2011. Both the iPhone and BlackBerry are losing market share. And more advertisers, 46.1%,  are showing interest in the Android system. While advertisers are clearly interested in making the most out of mobile marketing, they often lack the ability to design and deploy these campaigns. To stay ahead of the competition, ad agencies will be promoting their expertise both with the latest mobile formats and with the latest devices and platforms.

[Sources: Brands Shift Focus of Mobile Outreach. Emarketer​.com. 12 May 2011. Web. 24 May 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.