Survey of Digital Marketing Industry Projects Hike in Mobile Ad Spending

Mobile State of the Industry Survey Conducted by DM2PRO.com and Mojiva

NEW YORK – A survey of nearly 1,000 agencies, brand advertisers and publishers suggests that 2010 could be a break-out year for mobile advertising, but that publishers are struggling to participate in the upside of the latest media ad boom.

DM2PRO.com, in collaboration with Mojiva, polled tens of thousands of digital marketing and media professionals who subscribe to digiday:DAILY or have attended digiday conferences. The 985 respondents represent brands, agencies, publishers and technology innovators who comprise the digital advertising industry.

The following are some of the most significant findings of the survey:

Agencies: When asked to compare individual average client mobile ad budgets in 2009 with budgeted spending in 2010, client spending was pegged at $143,000 on average last year and $260,000 this year. This represents an 80 percent increase in spending. Asked to estimate a specific percentage by which their client spending would increase, respondents projected a more modest 65 percent jump for 2010.

Brands: Respondents predict that 2010 mobile advertising spending will more than double in aggregate, from an average budget of $269,000 in 2009 to $679,744 in 2010. Asked, “By what percent will your mobile marketing increase this year from last year,” the most popular choice for these brand managers (at 23 percent) was between 10 percent and 20 percent. The next most popular choices were less than 5 percent increase, but the same number of managers predicted an increase of at least double and in some cases more than triple their 2009 mobile spending. Some 10 percent said their mobile budgets would more likely decline.

Publishers: Most mobile publishers support their efforts with advertising (49 percent) or advertising and subscription sales (30.6 percent). More than 67 percent of publishers sell mobile separately, but for an overlapping 65 percent, mobile can be either bundled or included as a value-add in other media sales. However, only 25 percent of mobile publishers sell out more than half their inventory.

Well more than half of publishers (58.1 percent) participate in a mobile ad network, and ad networks contribute nearly 60 percent of publishers’ ad sales. When comparing return on investment, 71 percent of publishers say their return for mobile advertising is higher from internal ad sales than it is from a mobile ad network. Another 18 percent say mobile ad sales are comparable and 10.6 percent say mobile ad network ROI is higher.

Influx: The flow of first-time mobile marketers continues, with more than 20 percent of non-mobile marketers who responded predicting that they’ll spend more than 10 percent of their total 2010 marketing budgets on mobile. As for where they’ll get the money to take the plunge, 32 percent of these marketers say it will be “incremental spending,” while the next most popular choice of funding was from online budgets at 26 percent.

To learn more about our results, email Mojiva at [email protected] or DM2PRO.com publisher, Melinda Gipson at [email protected].

ABOUT MOJIVA

Mojiva is the simple yet sophisticated mobile advertising platform for advertisers and publishers who want to tap the smart phone user market. Based in New York City, the capital of the global advertising industry, Mojiva gives brand marketers, publishers, and businesses of any size everything they need to efficiently run and profit from mobile advertising campaigns. Mojiva has neatly packaged a rich array of easy-to-use tools, techniques, and analytics in a self-service mobile advertisement platform that makes it easy for advertisers to reach buyers, and publishers to reach advertisers. Founded in May 2008, Mojiva has grown faster than any other advertising platform, having served over 1 billion ads in its first eight months. The company can be found on the Web at www.Mojiva.com. For press inquiries, please contact [email protected].

ABOUT DM2PRO.com

DM2PRO.com is a membership site for digital media and marketing professionals who need benchmark data, case studies and “how to” information on the best ways to exploit the newest, most challenging online and mobile media of the day. Membership is just $20/month, and video from our recent digiday:EVENTS conferences is free. Come to DM2PRO.com and click on “Video” for immediate immersion. Or, click on State of the Industry Surveys section at right for a full list of our recent survey work, and input the word MOJIVA for two weeks free when prompted for a code word. Qualified members of the press should send an email to publisher Melinda Gipson at [email protected] for a complimentary account.