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Mobile Banner Ads Generate TV-Level Brand Recall

Posted by Mort Greenberg on May 18, 2008

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Small banner ads on mobile devices result in the same level of brand recall as a :30 spot on TV, said mobile advertising leader for Verizon Wireless Stephanie Bauer Marshall.

The data, which Marshall said came from a commissioned study by IAG, also showed that mobile banner ads produce clickthrough rates exponentially higher – at 2 percent – than online banner ads, where clickthrough rates have fallen to about 0.3 percent (via MediaPost).
The U.S. lags behind other parts of the world in terms of mobile advertising. 20 percent of U.S. mobile users get SMS marketing messages at least once a month, while that figure stands at 75 percent in Europe, said Dag Olav Norem, senior analyst with M:Metrics, during the Mobile Advertising Degree conference in Los Angeles yesterday (Wednesday). On the other hand, he says, 4.9 percent of Europeans receiving SMS marketing messages respond, while 12.4 percent in the U.S. do.

Marshall pointed out that there is still confusion surrounding mobile advertising pricing. CPMs for mobile are higher, because of the higher level of engagement. “Over time, the market’s going to find out where the balance is.”

Currently, CPMs hover between $20 and $30, but “around $20 or so is probably reasonable,” she said.

U.S. mobile ad spending is projected to reach nearly $1.7 billion in 2008, up some 89 percent from $878 million in 2007, and will surpass $6.5 billion in 2012.


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