According to a new study by MediaPost’s Center For Media Research and digital research firm InsightExpress, 82% of brands, agencies and other companies plan to boost mobile ad budgets over the next 12 months.
For starters, here’s the quick facts; four in 10 plan to increase spending by up to 30% and three in 10 by 31% or more in the next year. Fifteen percent expect no change and, surprisingly, another 3% plan to actually cut mobile ad spend. Half of mobile ad dollars currently come from Online budgets, 35% from cross-platform buys, 27% from funds specifically earmarked for mobile and 8% from TV budgets.
What’s interesting is that ad-spend for mobile is still derived from other ad-based budgets, even though it’s projected that 43% of mobile spending in the future will come from designated mobile budgets as the industry evolves and matures.
With so much press and enthusiasm surrounding mobile apps, the study found that utilizing branded mobile applications are the most intriguing aspect of mobile advertising, with agencies, brands, publishers, technology vendors and retailers alike all indicating enthusiasm toward the concept.
Another data point that struck me as surprising was the fact that nearly 50% of respondents indicated a strong desire for mobile video as a primary advantage of mobile advertising, followed closely by mobile coupons at 39%- which was also cited as being the most effective in terms of ROI.