Brands Embrace Mobile Social Advertising

by Mark Walsh, MediaPost Online Mobile Daily

Case study:A mid-size shopping mall includeda central Wi-Fi and Bluetoothhotspot. Marked by a large floor sticker at the center of the mall, it offered shoppers to enable their Bluetooth phones to receive discount coupons. On a daily basis, different stores provided discount coupons, which shoppers received directly to their phone.

Case study:A mid-size shopping mall includeda central Wi-Fi and Bluetoothhotspot. Marked by a large floor sticker at the center of the mall, it offered shoppers to enable their Bluetooth phones to receive discount coupons. On a daily basis, different stores provided discount coupons, which shoppers received directly to their phone.

First-quarter earnings reports from companies including Facebook, LinkedIn  and Yelp this week highlighted the growing role that mobile plays in social  networking and other online companies as their users are increasingly accessing  their services from devices rather than the desktop.Facebook reported that 30% of its advertising revenue is now coming from  mobile, up from almost virtually nothing a year ago. LinkedIn, meanwhile, is  getting 30% of its traffic from the mobile side and ramping up mobile  advertising to capitalize on that growth. Similarly, more than a third (36%) of  Yelp’s ad impressions are coming from mobile devices.

The rise of mobile social advertising reflects that marketers are warming to  the kind of engagement that social media delivers in the mobile sphere,  according to a new Yankee Group report, “Mobile Social Advertising Fights To Win  Over CMOs.”

Jason Armitage, author of the study and a principal analyst at the research  firm, argues that the surge in mobile social usage in the last year has helped  CMOs overcome their concerns with social advertising.

The report cites data showing that 59% of smartphone owners used social  networks at least once a week, while average time spent on social properties  among smartphone users was 64 minutes, at the end of 2012. Facebook alone counts  751 million active mobile users globally, and its recent release of Facebook  Home underscores its aim to play an even more central role in users’ mobile  lives.

All that activity is driving brands across major verticals to follow the lead  of retailers in using mobile social advertising to drive brand awareness and  specific promotions. CMOs are also reorganizing operations to respond more  quickly to events and be more flexible on measurement.

The speed with which Audi, Nabisco and other brands tweeted during the Super  Bowl XLVII power outage indicates their understanding of the need for rapid  communication. We have witnessed the co-opting of Facebook and Twitter to  support mobile advertisers from all major verticals,” noted Armitage.

Still, he points out that mobile social ads do not yet offer the scale of a  truly mass media like TV, despite claims by companies such as Facebook. That’s  in part because social platforms still are not a good way to reach people over  50. The report shows that only 31% of those 55 and over access social networks  on a smartphone at least once a week, compared to 75% of those 13-19.

That’s significant for the traditional big advertisers in Web and TV  advertising that count on older consumers spending on premium products and  services,” according to Armitage. The study predicts that social will become one  of mobile advertising’s most effective tools as formats evolve, although it will  take time for brands to develop internal tracking systems. Even so, Yankee Group  recommends that brands take advantage of social media’s ability to reach  customers on the go.

Among technology providers, the report calls for creation of a single  dashboard to manage multiple social networks. “Companies such as Adobe and Kenshoo should aim to bridge the divide between social networks to provide  unified management and measurement across a wide reach,” it states. Tech  providers should also help brands prepare for the shift to video in content  marketing.

Read more: http://www.mediapost.com/publications/article/199583/brands-embrace-mobile-social-advertising.html?edition=59604#ixzz2SXQkWSbQ

 

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