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Mobile Advertising To Become UK Marketing Mainstay

Mobile Advertising To Become UK Marketing Mainstay

Mobile advertising is set to become a mainstay of UK marketing plans over the next two years despite a current disconnect between usage and understanding of the medium, according to the latest research from the IAB.

The IAB’s Mobile Council surveyed 115 agencies, media planners, creatives and advertisers and found that 62% of respondents foresee mobile spend will grow over the next two years, with the medium becoming a standard feature of budgets by 2010.

Respondents predicted that mobile will ‘tip’ over the next two years largely as a result of the medium’s robust and reliable audience metrics such as measurement and campaign evaluation.

Despite the positive findings, the study also indicated that there is still a strong need for industry-wide education, with 76% of respondents requiring further information on the efficacy of the medium.

The research follows the IAB’s announcement last month to officially widen its remit to serve the mobile advertising industry. The five UK networks – 3, O2, Orange, T-Mobile and Vodafone UK – have formed a Mobile Steering Group (MSG) to oversee and advise on the trade body’s strategy to educate advertisers and agencies about the benefits of the medium.

Jim Cook, editor of MobiAdNews and chair of the IAB Mobile Council, said: “Expectations for mobile advertising are high but actual understanding is low. The industry needs to address measurement, effectiveness and benchmarks if mobile advertising is going to reach a tipping point by 2010.

“The IAB intends to tackle each of these areas through quality research, events and collaboration with other mobile trade bodies like the GSMA and the MMA.”

Earlier this month, a study commissioned by 02 and carried out by Vanson Bourne found that brands will have increased their spend on mobile marketing 150% by 2013 (see Brands Increase Mobile Marketing Spend).

The survey also found that the personalised nature of mobile marketing campaigns means they generate a higher response rate than traditional advertising.

A US forecast from market research firm Frost & Sullivan predicts that mobile advertising will reach $1.9 billion in 2012 (see US Mobile Advertising To Reach $1.9bn).

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