A September survey of 50 major US ad buyers in various industries by financial services firm Cowen and Company found that eight in 10 planned to increase their mobile advertising in the next 12 to 18 months, according to eMarketer.
In that time period, more than three-quarters of respondents plan to devote at least 5% of their total ad budget to mobile.
70% of respondents believed the fast adoption of smartphones and tablets was the top factor driving up the price of ads on mobile, indicating that mobile penetration is the most important factor determining advertising value. Two-thirds of buyers cited Improved ad formats on mobile as an important factor driving up prices. I increased mcommerce was seen as a factor in rising prices by just over half of respondents.
Mobile pricing was believed to be cheaper than desktop pricing by a majority of respondents, but most respondents believed that the two channels would be comparably priced within the next two years.
Display (primarily consisting of banner ads) was found by the highest percentage of respondents to be cheaper on mobile vs. desktop, which is understandable given that smaller screens limit the banner experience. Display’s share of ad buyers’ budgets was set to decrease by 5%, swapping its position as the No. 1 mobile channel with search.
Video will also see a bump in spend as mobile video viewing becomes more common, with buyers expecting to put nearly 10% of mobile spend toward video in the next year and a half.