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55% of budgets on mobile advertising in the US is wasted

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55 cents of every dollar spent on mobile advertising in the U.S. is wasted. About this is evidenced by the results of the study Celtra, commissioned by Forrester.

In addition, more than 70% of mobile ads are unable to provide a positive experience for users.

Forrester research is based on two surveys: 100 brand advertisers and 1,000 adult smartphone owners in the United States. Budgets for Internet advertising in each of the surveyed companies exceeded $200 million. it is Worth noting that the report was not delimiting the data by the mobile Internet and advertising inside of apps.

A survey of advertisers showed that the main challenges of mobile advertising are:

  • Increase brand awareness;
  • Increase the involvement of users in interaction with the brand;
  • Creating a positive brand image and evoke sympathy for him;
  • Increase loyalty;
  • The increase in LTV.
According to the report, more than 66% of brand advertisers think that at least half of the hosted mobile advertising does not bring the expected result. In addition, the customer survey showed that 73% of mobile ads are unable to provide a positive UX.

Top 3 customer complaints in relation to mobile advertising looks like this:

  • Ads cover the content (blocks pop-UPS, interstitial advertising);
  • The ads are not relevant;
  • Ads are slow to load.
The figure of $0.55 or 55% – self-evaluation of brands in relation to the effectiveness of their mobile campaigns. In other words, they know that their ads aren't working.

On the positive experience of interaction with ads, brands, and consumers understand this to be two different things. For most buyers unobtrusive advertising is more important than relevance. Brands hold the opposite opinion.

Preferred advertising format for consumers (41%) is the video:

Based on the obtained results, Forrester recommended to minimize the use of Intrusive ad formats, pay more attention to the video and to increase investment in the creation of quality creative. It also involves the use of more accurate targeting, real-time.

mobile ads study
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