Six years after the launch of the iPhone, and nearly two million apps later, brand advertising accounts for a meager 20 percent of mobile ad dollars. In spite of every lofty forecast of mobile ad dollars predicting an imminent skew towards brand advertising, the share of brand spend has risen from 15 percent to 20 percent in the past five years.
Based purely on the nature of the medium, this makes little sense. Mobile leads all digital consumer media in both usage and engagement — a dream for the brand advertiser , right?
Why then are brands not pushing their agencies to divert dollars into mobile data? More importantly, why are agencies, the trusted advisors of brand CMOs, not recommending significantly more mobile spend?
Detailed conversations with major global brands and their agencies shed much light on this contradiction. While a number of issues exist, there is one overarching concern that emerges as the biggest blocker of brand dollars in mobile.
Sources:
1. http://www.mobilemarketer.com/cms/opinion/columns/16349.html
2. https://blogs.oracle.com/oracledatacloud/critical-dimension-of-understanding-mobile-consumers
3. http://www.mediapost.com/publications/article/209829/iab-forecasts-uptick-in-mobile-brand-marketers-ad.html