Mobile advertising moves mainstream with Programmatic and mobile video dramatically increasing


Creative limitations still reported as significant barrier to adoption

Mobile advertising in Australia is finally hitting the mainstream, with research released today by Hoop Research and IAB Australia showing that marketers are increasingly turning to the medium for brand awareness and consumer engagement campaigns.  The 3rd Annual IAB Mobile Landscape Study found marketers are expanding their use of mobile from banner style and social mobile advertising, to use a broader range of formats such including mobile video, native and in-app advertising. 

The Mobile Landscape Study also found that even with a rapidly expanding market and many new advertisers, satisfaction with the effectiveness of mobile advertising has increased.  93 percent of buyers reported they were satisified with the results they have achieved with their mobile advertising activities and 41 percent of marketers now use mobile advertising as a significant part of their marketing campaigns.

Alice Manners, IAB Australia CEO commented: “The Australian mobile advertising market has matured in the last twelve months, with marketers embracing the medium for more strategic brand focused activities and overall they are using a broader range of solutions.   With eight out of ten respondents in the survey agreeing that the importance of the mobile screen is rising, the next phase of development will come as marketers leverage location specific targeting and when success metrics are standardised.”

The Study can be downloaded from IAB Australia’s newly launched IAB Mobile Centre of Excellence.   The Mobile Centre has been developed as an industry resource providing useful support and information to advertisers about the ever-growing potential of mobile.  Nielsen Mobile and Tablet Audience Measurement data will also be stocked in the Mobile Centre.

Programmatic was identified as an increasingly important part of mobile advertising, with 66 percent of respondents using it and a further 23 percent indicating their intent to use programmatic in the next 12 months.  The Study also found that buyers expect to use mobile video in 43 percent of their mobile campaigns in the next year.

While measurement remains the top barrier to increasing mobile spend, just 37 percent of respondents nominated it, down from 54 percent the previous year.  Respondents also reported that client understanding of mobile advertising is improving, with just 35 percent nominating it as a barrier, down from 41 percent in 2014.  Viewability was reported by just 14 percent of buyers as a barrier.  

Creative development was again highlighted as a challenge with a particular increase in concerns around creating effective cross platform creative as mobile in increasingly integrated in wider media campaigns.

The Mobile Study follows the recent PwC Online Advertising Expenditure Report which reported that mobile advertising grew 118 percent year on year and accounts for 28.2 percent of the digital display market – up from 20 percent in 2013. 

Other key findings in the study include:

-   53 percent of respondents experienced an increase in prices in the last 12 months, while 21 percent reported a decrease;

-   There has been almost universal usage of standard mobile browser banner style creative and social mobile advertising but over the next 12 months buyers are expected to significantly increase their use of:

  • mobile video (from 80 percent of buyers to 93 percent  including in their campaigns)
  • native (50 percent  to 75 percent)
  • in-app (50 percent  to 70 percent)
  • search (77 percent to 85 percent)

The Mobile Landscape Study findings were drawn from in depth surveys with more than 350 marketing and media professionals involved in the digital industry and screened for both their position in the industry and their involvement and knowledge of mobile advertising.    The Study was developed in conjunction with IAB Australia’s Mobile Ad Council.

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About the Interactive Advertising Bureau 

The Interactive Advertising Bureau (IAB) Limited is the peak trade association for online advertising in Australia and was incorporated in July 2010. As one of over 40 IAB offices globally, and with a rapidly growing membership, IAB Australia’s principal objective is to support and enable the media and marketing industry to ensure that they thrive in the digital economy.

IAB Australia’s board includes representatives of Carsales.com, Fairfax Media, Google, Mi9, Network, News Australia, REA Group, Telstra, TressCox Lawyers and Yahoo7. It has four objectives:

  • To be the ‘big tent’ for the entire digital advertising industry and define the future of digital advertising
  • To deliver the benefits of ad funded interactive experiences to Australians
  • To develop, coordinate and promote industry standards and guidelines that make interactive advertising a simpler and more attractive medium for agencies, advertisers and marketers
  • To prove and promote the effectiveness of interactive advertising to advertisers, agencies, marketers and the press

For further information about IAB Australia please visit: www.iabaustralia.com.au