Mobile – 2012: Ad money has not followed the audience, yet

Mobile advertising spend is a long way behind time spent on mobiles, according to Simon Andrews, founder of addictive!.

Speaking at MediaTel Group’s Mobile – 2012, The Year of Reckoning? event last week, Andrews said it is a complicated market but called on advertisers to catch up with consumers.

Michael Bayler, strategist and author, Bayler & Associates, went on to say that he is “disappointed that we’re not seeing more explosive growth in this area”. Referring to the IAB/PwC ad spend figures, which were released last week, Bayler said the industry is struggling and should be closer to the £2 billion mark given the number of smartphones and amount of usage.

The IAB/PwC figures show that advertising on mobile devices was up by 157% in 2011 to £203.2 million, while smartphone ownership stands at 53% in the UK. Also, 58% (28.6 million) of Britons access online content via apps or mobile internet each month.

Scott Beaumont, director, EMEA partnerships, Google, agreed with Bayler that the IAB numbers were “disappointing”.

Bayler suggested that the reason advertisers have not embraced mobile in the same way as other media is because mobile is fundamentally different – “mobiles allow consumers to be in control, they are a self-expression mechanic so it’s not like TV and other media, where advertisers can push content… consumers push content on mobile”. He explained that the approach has to be consumer-centric and offer real value to be successful.

Andrews is also a big believer in value, saying the key for mobile advertising is to solve a problem. Using branded apps as an example, Andrews said most branded apps are “rubbish” and do not engage users from the outset, which is a wasted opportunity. “Brands pay £80k for apps that do not do anything… advertisers need to understand that you need to earn your place in mobile”.

Although he cited Northface as a brand “getting it right”. The Northface app lets users find trails, hikes and bike routes based on search or their current location. Users can also pin their favourite trails, track distance, speed and elevation in real-time and post their trip to social networking sites like Facebook and Twitter. The brand also has a snow report app.

Bayler underlined the importance of knowing what consumers want, so brands can offer solutions and benefits. Clients need to understand the intimate nature of mobile, he said – they are so close to the consumer and it is essential for brands not to abuse that.”If you are going to vibrate in some-one’s pocket, you better have something good to say,” he added.

For Andrews, the problem is not just around privacy, but the fact that “brands do not know what works on mobile yet”.