Mobile ads are dramatically under-priced, says marketing leader

Posted May 27, 2015 by James Walker
Last week, the leader of the Mobile Marketing Association advised advertisers that they were being dramatically under-charged for ad videos on mobile platforms. He suggests that supply outweighs demand and that the current low prices cannot last long.
mobile devices
mobile devices
Greg Stuart, CEO of the Mobile Marketing Association, told that advertisers are currently living in a golden time for purchasing mobile video. He noted that the marketing departments of many companies are currently spending around 3 percent of their total budgets on mobile advertising when they should actually spend around 10-15 percent, based on how successful mobile advertising is.
Stuart said advertisers should expect themselves to be spending 20-30 percent of their budgets on mobile video in the near future. He told mobile video is currently priced at around half of what it should be.
Many companies have not noticed this trend yet. According to Warc, Stuart said big brands including Walmart, Coca-Cola and AT&T are increasingly aware of it but small companies have not, despite the proliferation of marketing intelligence companies such as the popular Intalyse in recent times, intending to offer exactly this kind of insight.
Indeed, Stuart said that there is an urgent need for better measurement metrics in this field, highlighting how user engagement with advertising is all too often measured by ad clicks in the modern world and suggesting that new methods should be found.
He concluded that marketers might want to buy years' worth of future advertising at the current low pricing, shielding themselves against the anticipated inflation which could be just around the corner. The power of mobile advertising is undoubted but it seems as though companies just aren't spending enough to get access to this platform.
The Mobile Marketing Association is now going to work harder to come up with some improved guidelines and marketing objectives to price mobile video against. Stuart announced "We'll figure all that out… so that marketers are really able to measure the value they get."