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BizReport : Mobile Marketing : February 22, 2012

Flurry: Mobile ad spend lags behind sector growth

Brands and agencies have yet to adapt to the massive popularity and usage of mobile apps among consumers, according to Flurry, and ad spend on the channel is lagging behind growth.

by Helen Leggatt

flurry logo.pngThe average American now spends as much or more time with their mobile device than with any other form of media bar television.

However, according to a new report published this week by mobile analytics firm Flurry while American consumers spend 40% of their media time watching television, mobile is now in second place commanding 23% of their time.

Despite this huge increase in engagement with mobile devices, marketers have only committed around 1% of their 2011 spending on mobile campaigns.

"Comparing where usage and spending vary most one notes severe over-spending in print advertising and even more severe under-spending in mobile," says the report.
"In short, despite the fact that mobile advertising is growing, the platform is far from getting rational levels of spending compared to other media."

Writing on the Flurry blog Peter Ferago, Flurry VP of Marketing, says he believes the speed at which mobile marketing emerged is partly to blame for the lag in spend. "With the iOS and Android app economy only three-and-half years old, Madison Avenue and brands have yet to adjust to an unprecedented adoption of apps by consumers," he said.

More than 1.2billion apps were downloaded across Android and Apple devices worldwide in the week following Christmas Day, according to Flurry, the highest number ever recorded by the firm.

Ferago expects the 1billion per week download figure to become more commonplace during 2012 as the nascent mobile market "continues to amaze".

Tags: ad spend, marketing budget, mobile ad, mobile apps, mobile trends

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