The Fiksu Blog

Same Budget, Better Results: Optimizing Mobile Advertising Spend

Mobile Marketing Association

This week marks Internet Week NY, an annual celebration of technology’s impact on business and culture—including of course, the impact of mobile.

It’s interesting to note that while Americans are increasingly spending more time on mobile, advertisers have yet to fully capitalize on the medium. In 2014, US advertisers are expected to spend just 7 cents per US adult on mobile, compared to 83 cents on print, despite the fact thatmobile CPM rates are the second lowest among all advertising mediums.

A case study presented at the recent MMA Forum NY revealed that this imbalance in spending is not leading to optimal results. The study analyzed media spend for an AT&T campaign promoting its new MotoX device. The distribution of the campaign spend was 92% TV, 5% Online Desktop, 1% Print and only 1% mobile. While total impact was predictably highest on TV, mobile delivered nearly 2x the impact per dollar compared to TV.

The study suggested that re-allocating total funds could lead to improved results. Specifically, it noted that the optimal mobile allocation of the AT&T campaign would be 16%  (with TV dropping to 72%). By re-allocating spend to mobile, there would be an incremental potential of 2.5 million people or 12%. The key factor in all this being that you could obtain better results with the same budget, just by becoming more aware of the impact of mobile.