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BizReport : Advertising : October 04, 2006

US Mobile Ads Lagging

US consumers continue looking at mobile text ads as a novel concept, and they aren’t converting to sales as quickly as European consumers.

by Kristina Knight

In August, the response rate to mobile ads in the US was 7% compared to conversion rates of about 29% in Europe, according to MediaPost. However, the news isn’t all bleak.

According to a new study from M:Metrics, the lag is partially because there are so few ads going to US mobile users. The report states only 12.9% of mobile users reported even getting a mobile ad in August. Conversely, in Spain, nearly 67% of users reported getting SMS messages.

Another difference, in the US ads for content downloads gain the largest response. In Europe ads for TV game or reality show contests get the biggest response rate.

M:Metrics says the 7% response rate is low, but doesn’t spell disaster for mobile marketers. About 38% of mobile users are now sending text messages which sends a positive message to marketers. M:Metrics compares mobile ad conversions to the early days of email advertising.

“These numbers are not unlike what we saw in e-mail response during the mid-1990’s as the Web emerged as an advertising medium,” said Will Hodgman, M:Metrics CEO. Hodgman went on to say that more major brands were adopting SMS advertising which should impact the lagging US survey numbers in the coming months.

Tags: mobile ads, mobile marketing, mobile text messaging

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