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BizReport : Mobile Marketing : August 03, 2011

Low ROI holding back increased mobile ad spending

A survey conducted by the Relevancy Group and commissioned by online and mobile signup ad platform Pontiflex found that if it weren't for the low return on their investment marketers would increase their mobile ad spending.

by Helen Leggatt

Pontiflex-logo.jpgDespite the hype, mobile advertising just isn't providing marketers with the ROI necessary to justify increasing their ad spend. A whopping 93% of respondents to the survey said that if they realized higher returns they would increase their mobile ad spending.

The survey of Fortune 500 marketers found that over half (56%) were dissatisfied with or don't use click-based mobile advertising.

"On mobile, click-based ad units aren't valid options for mobile marketers focused on increasing ROI," said David Daniels, CEO and Co-Founder of The Relevancy Group. "Mobile advertising requires a dramatic shift that is both focused on and respectful of the user - honoring a good experience with meaningful engagement."

Forty-one percent of marketers said the most effective mobile ad campaigns were those where they paid for the email addresses and social networking names of people who have opted in to receive communications from them, called signup ads.

With signup ads, advertisers only pay for actual signups, or the data given by consumers who have chosen to hear from them. The ads allow consumers to opt-in to get more information from brands and products that most interest them, without leaving a website or mobile app.

Tags: advertising spend, click-based ads, mobile ad spend, mobile advertising, mobile marketing, return on investment, signup ads

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