Mobile devices have quickly become powerful marketing tools, yet brands are still not investing in mobile advertising as they probably should. Despite practically “everyone” owning a mobile device, mobile marketing accounts for a mere 5 percent of the average brand’s budget. Why? Usual reasons include difficulty tracking performance and gauging ROI.
According to recent Forrester research, 62 percent of marketers surveyed felt “confident” about measuring mobile ad campaign ROI, yet only 18 percent felt “very confident” in their ability measure ROI. Marketers want to see hard numbers if heavily investing in mobile, which many experts find “counter-intuitive.”
“Consumers now spend over half of their leisure time on mobile devices,” says Gal Oppenheimer, senior product manager of built.io, a mobile back-end and application development platform. “Mobile advertising is clearly important, but it needs to get easier to track brand awareness and consumer spending.”
Other experts say marketers are too busy comparing mobile and desktop metrics, which is essentially a waste considering how different the mediums are. Marketers are used to cookie-based tracking, but such tracking doesn’t really work in the mobile world. A single cookie isn’t capable of tracking consumer actions as they go back and forth between mobile browsers and apps, nor can they follow consumers who click on mobile app download ads. The latter is a common mobile ad unit that encourages consumers to download a brand’s app.
Mobile marketing is definitely a work in progress, yet current efforts are encouraging. Groupon, for example, works with at least three different mobile ad networks, and places ads on a wide range of publishers’ mobile sites and apps. The online retailer works with mobile advertising vendor Fiksu Inc. to discover which mobile attribution methods are best for tracking ad effectiveness.
Facebook is also working on a solution to the “mobile puzzle.” The social media giant introduced a mobile ad unit in April of this year, Audience Network, which allows marketers to target and place ads across an assortment of mobile apps utilizing what Facebook knows about its sizable user base. The network is designed to result in more relevant ads on apps, which leads to improved click-through rates, and subsequently a better ROI for the advertiser and more revenue for app developers.
Marketers are still hesitant, but if tracking abilities improve, more money will go into mobile ad efforts. “Forrester found that if marketers could track more reliably, 86 percent would allocate more of their budgets to mobile,” wrote Mike O’Brien in a recent post for ClickZ. “And 93 percent would run more cross-channel campaigns, something only 13 percent said they felt confident measuring.”