It’s no surprise that Americans spend leisure time on mobile devices. Many studies have shown that mobile device usage is on the rise all over the world. What is surprising is how few businesses are truly taking advantage of the opportunities offered from mobile advertising.
A study by Flurry measured the percentage of marketing budgets allocated to each type of media versus how much time consumers interacted with that media. Mobile advertising has grown slowly, especially when compared with smartphone and tablet adoption rates. Consumers spend 23 percent of media time on mobile devices. While Americans spend almost a quarter of their time engaging with mobile devices, only 1 percent of advertising dollars are spent on mobile ads.
The study indicated that 43 percent of US advertising dollars are spent on television ads. That’s in line with the 40 percent of media time Americans spend watching television. Similarly, radio advertising had about the same amount of advertising dollars spent as minutes used per day, with 11 percent of advertising costs serving 9 percent of American time.
Print advertising has a wider margin, with 29 percent of advertising funds being spent on print, while only 6 percent of American media time is spent engaging with it. Businesses are spending significantly more on print by percent than consumers are spending looking at the ads. Marketing expenditures on print advertising are a case of severe overspending.
Purchasing ads in mobile applications is one way to get the most from your advertising budget. Traditional marketers have been slow to embrace mobile ads, allowing enterprising marketers to receive potentially excellent advertising rates on highly downloaded apps and viewed mobile sites. There is clearly an untapped opportunity in mobile advertising for innovative companies bold enough to leap into this new medium. A company hesitant to spend a great deal of money on mobile marketing can start slow, allocating a small part of their budget to mobile advertising. The rewards could be well worth the negligible risk.