Mobile & Apps

Spending on Mobile Ads Grew 100%+ in 2013

mobile ads growthThe very latest data from eMarketer has confirmed 2013’s massive increases in mobile ad spending. According to information taken from the Millennial Media network, mobile ad spending growth across all industries was “well over 100%” higher in 2013 than it was in the previous year.

The increases are driven in large part by a few big-spending industries:

  • Pharmaceutical companies spent 744% more in 2013.
  • News companies spent 530% more in 2013.
  • Sports companies spent 411% more in 2013.
  • Consumer goods companies spent 357% more in 2013.
  • Entertainment companies spent 264% more in 2013.
  • Restaurants spent 234% more in 2013.
  • Health, fitness, and wellness companies spent 177% more in 2013.
  • Technology companies spent 132% more in 2013.

Are mobile ads worth it?

Unless these companies are simply burning money (wouldn’t be a first for corporate America), this data indicates that mobile ads are indeed generating worthwhile returns. But it can be difficult to pin down a number that covers all mobile ads, or provides an average rate of return, without being misleading. For example, Facebook mobile ads for retailers return 162% on iOS devices, but lose money on Android devices. And that’s just one platform and one industry showing a massive discrepancy across devices, of all things.

The numbers above offer some guidance as to which industries are seeing the biggest benefits from mobile ads. Each business should experiment and test for itself, however, to see whether mobile ads are worth the cost. There are a wide variety of mobile ad platforms and popular apps in which a mobile ad can appear, and finding the most effective one for your business can take some trial and error.

The goal, as with all advertising, will be to define your target audience correctly in terms of demographics, and then to study where that audience spends most of its time on mobile devices.

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What can a mobile ad do?

The most popular goal for mobile advertisers is to drive traffic to a website. Of the advertisers polled by Millennial, 34% reported that linking was the point of their mobile ads. About 25% also wanted a “sustained mobile presence,” and 22% were trying to “drive brand awareness.” But these softer goals take a backseat, it seems, to the easy-to-measure clickthrough rate. Obviously, any business can understand and directly benefit from increasing visits to their website, as this traffic increase can boost the ultimate amount of sales and conversions enjoyed online.

In total, roughly $18 billion was spent on mobile ads in 2013. This number is expected to climb by 62% to about $29 billion next year. Will your business be a part of that? Let us know!

We’re curious about small business apps reactions to the growth of mobile ads.

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