According to a new report published Tuesday from Flurry, advertisers simply aren’t coughing up enough cash for mobile ads.
Despite the well-known fact that the average American now spends even more time tethered to his or her iPhone than more traditional forms of print and electronic media, mobile ad spending hasn’t kept pace with this growth in the mobile sector.
“Comparing where usage and spending vary most,” the report reads, “one notes severe over-spending in print advertising and even more severe under-spending in mobile. Web usage also shows sizable under-investment, relative to platform usage, though not as dramatically as seen on mobile. In short, despite the fact that mobile advertising is growing, the platform is far from getting rational levels of spending compared to other media.”
“We believe the main reason for this disparity is that the mobile app platform has emerged so rapidly over such a short period of time,” Flurry concedes. “With the iOS and Android app economy only three-and-half years old, Madison Avenue and brands have yet to adjust to an unprecedented adoption of apps by consumers.”
Although current trends show dramatic under-spending in the mobile ad realm, that will likely change in the coming months and years. In fact, Flurry points to a recent IAB study which shows that 63% of top brand marketers have increased their mobile advertising spending over the last two years, and that 72% plan to increase advertising spending over the next two years.
To read the complete run-down from Flurry, click here.