Despite the shaky UK economy, brands are continuing to invest billions into digital advertising – both online and through mobile devices.
This is one of the findings from the latest advertising expenditure report from the Internet Advertising Bureau (IAB); with advertising spend shooting up by 12.6 percent to £2.6 billion in the first half of the year.
Fuelled by the rocketing number of smartphone and tablet users, mobile advertising alone grew by 132 percent to £181.5 million in the first half of 2012, from the previous year, and now accounts for seven percent of all digital advertising spend.
These results support the findings of Adobe’s Q2 2012 Global Digital Advertising Update, which we blogged about back in July. Our report showed that whilst conversion rates for tablets are 120 percent higher than those for PCs, Cost Per Clicks (CPC) rates are markedly less than desktops or laptops, 30 percent less in fact – opening a window of opportunity in the digital advertising market.
“Mobile traffic continues to demonstrate a significant opportunity for advertisers as the industry is still yet to normalise click through rates” comments Jonathan Beeston, director of new product innovation at Adobe. “With results remaining strong for mobile, there is a growing emphasis on mobile devices as tablet conversion rates outshine desktop conversion rates.”
However, the gap in that window of opportunity is starting to close and it won’t be long until the cost per click rate starts to increase. To make the most of this, brands need to act now to make sure they don’t get shut out by their competitors.
“There’s still time for brands to get in there and reap the benefits delivering greater ROI but they need to move quickly before this ever shrinking window shuts,” adds Beeston.