Distrust, Irrelevance Temper Mobile Ad Engagement

August 6, 2012

hipcricket-reasons-not-engaging-mobile-ad-august2012.pngAmong smartphone owners who have never engaged with mobile ads, a lack of relevance is the top reason why, according to [download page] a July 2012 survey from Hipcricket. 43% of this group said that the ads were not relevant to their interests, while 39% said they did not appeal to them. Other common reasons for not engaging with a mobile ad include concern that it was spam (31%) and uncertainty over the source (21%). Overall, 35% of the mobile owners surveyed said that they have never engaged with a mobile ad.

According to July 2012 survey results from Prosper Mobile Insights, roughly one-third of smartphone and tablet users said they would be more likely to pay attention to an ad on their device if the ad’s topic was relevant to them, making this the leading reason among those identified.

Consumers Willing but Not Able

Data from Hipcricket’s “2012 Mobile Advertising Survey” indicates that 58% of respondents describe themselves as “more inclined” to engage with a mobile ad from their favorite brands, if the ads include an offer, deal or coupon. And they are relatively open to sharing their personal information: some 44% would be willing to provide personal information via a mobile ad in return for a reward, coupon or deal. But, an overwhelming 74% report that their favorite brands are not advertising to them on their mobile devices, which the researchers call “a significant missed opportunity.” And however eager they are for rewards, just 28% report having engaged with a mobile ad to earn a reward like a coupon or game-play benefits.

Clicks Lead Engagement Methods

When asked how they have engaged with mobile ads, a plurality of respondents (38%) did so by clicking or tapping on the ad. Other common ways of engaging included redeeming a coupon (31%), clicking on a sponsored link in a text message (29%), downloading an application they saw advertised (28%), and visiting a mobile website as a result of an ad (25%).

Asked what type of mobile ads they have viewed, 70% of the respondents recalled viewing mobile banner ads, followed by SMS/text message ads (44%), ads within a mobile game or app (42%), mobile video ads (38%), and mobile email with an ad (31%).

Smartphone Owners Make Purchases, Referrals

Mobile advertisers must overcome reticence among some consumers, but smartphone owners who are familiar with mobile ads are comfortable making purchases or recommendations using them. 46% of those surveyed have viewed a mobile ad, and fully 64% of those who have viewed an ad have made a purchase as a direct result of mobile advertising, for a total of 29% of smartphone owners.

The responses varied by sex, with men (68%) more likely to make a purchase as the result of a mobile ad than women (58%). Men are also more likely than women to have referred a friend to a product or service as the result of seeing or engaging with a mobile ad (52% vs. 37%).

Younger respondents (aged 25-34) have the most interest and interactivity with mobile ads. Some 70% of them have made a purchase as a direct result of a mobile ad, and 58% would be willing to provide personal information via a mobile website in return for a reward or coupon (twice as likely as those in the 45-54 year old category). 48% think more positively about their favorite brands after interacting with them via their mobile device, which is significantly more than any other age group.

About The Data: The 2012 Hipcricket Mobile Advertising Survey was conducted in June 2012 via email and results were derived from 650 US-based mobile phone users, distributed across five age categories (18-24, 25-30, 31-35, 36-40, 41-45) and four income ranges ($25,000-$50,000; $50,000-$75,000; $75,000-$100,000; greater than $100,000). Respondents were evenly divided between males and females, and 27% resided in the Northeast; 21% in the Midwest; 30% in the South; 22% in the West. 73% of the respondents owned a smartphone.

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