Mobile Ad Demand Ramping Quickly

After many years of being in the “next year” or “experimental” column mobile ad demand appears to be growing in earnest. The latest in a series of indications is survey data from MediaPost and InsightExpress presented at last week’s OMMA Mobile show.

Here are some findings from that advertiser/agency/brand survey:

57% of survey respondents had already done some form of mobile advertising

40% of respondents plan to increase mobile spending by up to 30% and three in 10 by 31% or more in the next year.

— 50% 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 (the survey also found that dedicated mobile ad budgets are being created)

In terms of areas of greatest interest the survey respondents indicated:

— Branded apps
— Mobile video
— Mobile coupons

In terms of best performing areas/units here was the order that respondents specified:

— Mobile coupons
— Text links (unclear whether this is mobile search or SMS or “all of the above”)
— Mobile Web “banners”

Another unrelated data-point coming out of the OMMA Mobile show, reported by show organizer Steve Smith, was the following: “According to Fandango’s CMO Ted Hong, on some weekends the company sees up to 20% of advance movie ticket sales come through mobile.” A couple of weeks ago InsightExpress separately released findings from 2009 mobile audience research. One of the more compelling findings in that document is that 1 in 5 mobile users (and higher among 18-44 year olds) have some sort of direct “text alert” relationship with brands/stores.

Here’s the InsightExpress list in terms the hierarchy of categories: 

  1. Airlines
  2. Music groups
  3. Restaurants
  4. Food/drink products
  5. Radio stations
  6. Weather
  7. Magazines
  8. Sports
  9. Traffic 
  10. Other

Mobile couponing, loyalty and alerts programs such as the above list may prove to be the “sweet spot” in mobile marketing/advertising. This is my suspicion. But alerts and opt-in SMS based offers don’t really count as “advertising” per se.