Study: Mobile ads increase user engagement… these days

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Mobile advertising seems to be the rock-star among banners these days. For marketers it is becoming an essential digital marketing tool for the future due to its ability to achieve an essential audience reach everytime and everywhere.

The latest global MediaMind study „The Comprehensive Guide on How to Leave an Effective Message“ suggests to increase engagement levels and pay-per-click rates through the location where the advertisement is displayed, the time when users see it, and the size of the banner seem to be crucial. For the study MediaMind surveyed about 21 billion impressions, from the second quarter of 2010 to the first quarter of 2011.

The study finds that telecom advertising is the second highest vertical for user engagement. It is just surpassed by sports, still ahead of electronics, travel and retail though. This comes as no surprise as the telco spendings are increasing as of the high competition in the market place. In 2011, US Telecom advertisers are expected to spend over $4 billion on online advertising.

However, awareness is high, click activity still lacks engagement. From one million impressions web users would „dwell“ on 70,000 adverts but only click on 1,800. The old question reamins: If we could only measure the final impact of banner awareness before people click banners.

The success factors in a telco advertising campaign: timing and location. Seen from a conversion point of view, telco ads achieved the highest conversion rate after the first impression, generating about 5000 conversions every one million impressions. Users were most likely to convert within the first three exposures to commercials, claims the study. And users converted with a higher probability when telcos targeted them with the most effective ads early in the campaign.

„Out of every one million impressions that are served, 70K impressions are Dwelled, and 1,800 impressions are clicked on. Overall, every million impressions generate 5,300 conversions.“ Study Conclusion

Spot On!
In the future, will the high clickrates from mobile banners stay high (0.6% average CTR compared to usual banners reaching not even 0.1% CTR)? A former MediaMind study has also found that users convert at a much higher frequency when exposed to mobile ads. We will see what the mobile evolution of the user brings. In my eyes, it is still the creative aspect and the first message that goes out to the user that makes the change for a great campaign, followed by an „intelligent creative optimisation“ which Gal Trifon, MediaMind General Manager obviously suggests.

PS… At dmexco I will be moderating the panel: „Mobile rocks! Strategies and Challenges in Mobile Advertisment“. (21.09.2011, 2.45pm, Congress Hall, Cologne). The keynote will come from Greg Stewart, CEO of the MMA. The panel will focus on opinions and answers from the international mobile market. Which strategies should be implemented to build up a successful communication via the mobile channels and which successful case studies are there? Come and join us!

Any further findings on mobile advertising you can add?

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  1. Incentivized ads boost brand perception, study finds am 20.09.2011 12:32 

    […] on a daily basis. Mobile advertising shows some similar development in terms of incentivization and engagement. Often companies said that the value of ads is getting lower as they just value it from a […]

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