In a new survey conducted by Relevancy Group on behalf of Pontiflex, it was found that a large majority of respondents cited low ROI as a primary reason to not increasing mobile advertising spend, or beginning a mobile strategy altogether.
In total, 43% of respondents said they won’t increase their mobile spend in 2011 because the ROI simply isn’t there. If it was, 93% would feel comfortable increasing their spend, according to the survey. What’s the reason for a lack in ROI? According to the research, it’s because “advertisers haven’t been respectful of consumer behavior.” Most mobile ads today are click-based, which produce errant clicks. This upsets users and also drives up the cost of advertising in general.
To combat this, advertisers need to abandon traditional Online ad-units and measurement techniques in favor of CPA (cost-per-action) ad-units, according to the research. Models such as “pay-per-signup” or “pay-per-lead” can be far more effective than PPC while eliminating the problem of errant clicks. Going back to the survey results, roughly three quarters of respondents cited improving ROI on mobile campaigns as a top priority.