Mobile Ad Spend

Businesses increasing mobile ad spend

Mobile ad spend is on the rise and according to Marketing Magazine it’s the automotive, finance and healthcare industries leading the charge.

"While surveying ad spend allocation to mobile and digital solutions in Q1 across global brands this year with a combined budget of $7 Billion, we discovered Australian automotive, financial and healthcare brands are leading the way in the APAC market"

Why it's the Smartphone's Fault

Consumers demand for tech-savvy solutions are now driving the need for organisations, both large and small to look at more effective advertising channels for growth. Businesses are identifying the shift in consumer preferences and are adapting to provide innovative solutions to engage and capture these users. Simply put, consumers are spoilt for choice, and it's largely the smartphones fault. We have become accustom to the smart revolution. A period of time since the introduction of the smartphone, in which these innovative little gadgets lead the charge for progression, simplifying many of the time-consuming chores we had to partake in, reducing the effort required to complete these tasks.

Consumers now have limitless technologies at their disposal, they have small, pocket-friendly devices which are capable of accessing almost the entirety of human history and information with the touch of a button. They can watch videos, and pay their bills, they can interact and send content, design and review... the possibilities of the smartphone are endless and the future is bright.

Satisfying Expectations

The issue that has arisen surrounds expectation. No long are consumers happy with the norm, they expect innovation and won't take a backwards step. This is driving many organisations to the nth degree to ensure they can sufficiently match the needs and desires of users, providing them with serves and innovation that, in the past decade, has reached a growth rate we didn't expect for years.

So what do I mean by this... well, you only need to look at the statistics.


"Australian Financial brands spent 14.6% more on mobile ads in Q1 2015 than the same period 2014, saw a 24% year-over-year increase in mobile ad impressions and received 8.5% increase in clicks during this time. Globally, 67% of consumers clicked on a mobile banking ad."

Many are pinpointing the growth towards a number of factors, with one standout being that of NFC technology which has grown exponentially over the last few years. The integration with mobile devices has made it easier for consumers to pay for products through a simple swipe of their phones. Other significant changes factors that have been credited for the growth are in relation to advances such as Smart Cards and the mobile applications and accompany them along with growth in the Digital Wallet space which has taken off over the past 2 years.


"Healthcare brands spent approximately 13% more on mobile ads in Q1 2015 than a year earlier, and saw a 27.5% year-over-year increase in mobile ad impressions and over a 10% increase in clicks during the same quarter."

This wouldn't have anything to do with the saturation of healthcare applications on the market today would it? What about the introduction of health related technological accessories like FitBit, JawBone or Smartwatches? What about Apples introduction of the ResearchKit? Or, maybe, DoctorDoc is having more of an impact than we first though? The healthcare industry has certainly had a shake-up over the past five years, and much of it has to do with technology and the smartphone.


"Innovative automotive brands recognise the importance of mobile in the product research and conversion lifecycle. In Q1 2015, automotive brands increased their spend on mobile ads by 10% and saw an 11% year-over-year increase in impressions and an 8.8% increase in clicks during the same quarter."

Many are attributing the growth in automotive, mobile advertising to the sheer volume of car applications consumers can purchase products from. 33% of auto buyers start their path to conversion from a mobile ad with organisations like Carsales, Drive, even eBay and Gumtree make it even easier for consumers to do the required research and make final purchases on their mobile devices. As a result, automotive brands have become receptive to this and have begun to push much more of their marketing budgets through mobile channels. The results - greater exposure, greater impact and an overall better result for businesses and their customers.

The Bigger Picture

Brands are wisening up to the growth of mobile and the need to be involved in this space. Mobile is growing and having a significant impact on many platforms, industries and markets globally. The role and reach of these devices, these technological masterpieces are dragging consumers towards their use as a platform for just about anything. As a result, organisations are becoming aware that to stay competitive, they need to be in this space, along with all the other 'traditional' marketing platforms.

I'll leave you with this statistic, provided by Juniper Research. Overall, the annual global advertising spend on mobile devices is expected to reach $105 billion USD by 2019, up from an estimated $79 billion in 2015. That's some serious growth.