Recent research indicates that the majority of marketing executives agree that companies have overinvested in performance at the expense of brand, with more expecting to up their investments in brand than performance this year. A new report [download page] from Yieldmo and Forrester Consulting shows that mobile advertisers are also making a similar shift towards branding objectives.
While mobile has typically been a vehicle for direct response efforts, the survey of more than 150 US media buying decision-makers finds that brand spend on mobile is growing. In fact, 45% of respondents’ mobile ad spend is allocated towards brand-building, compared to 55% used for conversion and direct response.
While almost 3 in 5 (57%) respondents say they are able to quantify the value of both their brand and direct response mobile spend as part of their overall advertising, more than two-fifths say they are only able to quantify either the value of their brand spend (22%) or the value of their direct response spend (21%).
A closer look shows that some 57% of respondents say they are very confident in their company’s ability to measure brand safety for their mobile advertising efforts. However, only a minority express that level of confidence for other metrics.
For example, fewer than half are very confident in their organization’s ability to measure conversion rates (40%), impressions (40%), smartphone interactions (38%) and viewability (30%). Added to that, only about one-quarter of respondents appear very confident in their ability to measure video completion rate (24%) or click-through rate (24%) for their mobile advertising efforts. This is despite a push last year for marketers to increase their investment in mobile marketing data.
In the eyes of the respondents, this inability to effectively measure mobile advertising leads most often to lower customer satisfaction, an inability to efficiently drive customers through the purchase lifecycle, and the inability to optimize campaign creative and targeting based on performance.
Moreover, only about 1 in 6 (16% of) respondents say they are either very or extremely capable at measuring customer attention with mobile ads. In marketers’ view, having a better handle on customer attention would make them better at retargeting inattentive consumers (65%), understanding frequency delivery by individual consumers (62%) and enhancing click-through rates by retargeting attentive customers (62%).
To read more, the full report can be downloaded here.
About the Data: Findings are based on a survey of 164 US decision-makers of their organization’s media buying and media buying technology decisions conducted in October 2019.