The growth of mobile advertising brings changes in customer acquisition

Internet users today switch from desktop PCs to mobile devices and new users start straight on mobile devices. Online advertising goes through the same change. Mobile advertising is growing at a dizzying pace and is taking the market share of most other media. How can you do mobile advertising efficiently?

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According to the Advertising Expenditure Forecasts survey, published by Zenith, mobile advertising will reach a 30.5% share of total advertising expenditure in 2020, an increase from 19.2% in 2017.

The total value of global mobile advertising expenditure will be $ 187 billion in 2020. This is more than double the $ 88 billion total that will be spent on commercials on desktop computers, and only about $ 5 billion less than the $ 192 billion spent on television advertising. With the current growth rate, mobile advertising will outperform TV in 2021.

Mobile ad expenditure rose by 35% in 2017 and we expect it to grow by 21% per year by 2020.

Growth of advertising expenditure and GDP 2017-2020 (%)

Zenith - Advertising Expenditure Forecasts - June 2018

It is possible, however, that brands moving their budgets to mobile advertising will decrease their ability to attract new customers and to increase their market share. Zenith's Touchpoints ROI Tracker survey shows that new buyers and buyers with lower purchasing volumes are far more likely to recall ads from traditional mass media. For this reason, it is crucial for brands to have a strong awareness not only of customer acquisition channels, but also of customer retention channels.

According to the TouchPoints ROI Tracker, TV ads are the most effective in terms of people being able to recall them, while mobile ads are the least effective. There is a 53% probability that potential, as well as current customers, will recall a TV ad, while in case of mobile advertising, this probability drops to 41%.

Targeting mobile ads to existing customers can certainly help brands achieve short-term performance successes, especially as mobile advertising is increasingly linking the whole consumer path. However, when it comes to generating long-term awareness among potential customers, mobile advertising is currently less efficient than traditional media. Therefore, brands that make significant use of mobile advertising should consider increasing their investment in traditional mass media to compensate for this shortcoming.

Article source Zenith - leading global media services network focused on ROI
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