Mobile Ad Growth Stalling Due to Agency Attitudes

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Posted 5 years ago

Despite the increasing numbers of people using smartphones and tablets, advertising agencies are reluctant to invest in mobile ads, according to a new study released today.

In the study reported on today by Marketing Week, UK-based media trade body, the Association of Online Publishers (AOP), surveyed 37 media owners and while 87 per cent of publishers are receiving a fifth of their traffic through mobile, only 29 per cent are receiving a fifth of their revenue from mobile sources.

Other figures from the study suggested that 91 per cent of those surveyed suggested that tablets posed a great opportunity for revenue growth and 85 per cent felt the same way about smartphones. Recent mobile ad revenue figures released by eMarketer showed that mobile device users clearly accept mobile ads as a part of their browsing experience, which probably tells us why 55 per cent of the AOP responders feel that there is a ‘lack of focus’ from mobile advertising agencies.

With more people than every browsing the web and reading their news on the smaller screens, digital ad sales are needed more than ever to offset the fall in print advertising revenues.

Director of AOP, Lee Baker said: “We are going to see some fundamental changes to the mobile ad market over the coming year as ad agency attitudes catch up with publisher investment and mobile audience size,” and that the lack of mobile advertising revenues is due to agencies “not being up to speed” with how the process works and “refusing to get stuck-in”. Basically, agencies are letting the whole mobile ads market pass them by.

The study reveals that 72 per cent of publishers feel that the main issue facing them in the expansion of activity is the range of different models of phones and operating systems. 56 per cent feel that there is a lack of in-house resources and 47 per cent believe that there are difficulties in integrating current sales strategies with mobile.

Mobile is the fastest-growing platform and is still in its infancy in terms of potential growth. Any agency not willing to embrace it soon, risks losing out of millions of dollars.

– Anthony Carter

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