Does Mobile Have an ROI Problem?

There have been many knocks on mobile, but its value is infrequently in doubt, particularly at this early stage. But there is evidence that brands might not be getting the return they hoped for with mobile.

According to a recent study by The Relevancy Group commissioned by mobile ad company Pontiflex, most mobile marketers from the nation’s largest brands aren’t happy with their mobile advertising campaigns. The study found that 56 percent of a pool of 363 senior marketers from major brands reported that they were dissatisfied with their click-based campaigns’ ROI or would not use click-based campaigns in the future.

A significant minority of those surveyed stated that they would not increase mobile ad spending this year because of low ROI (43 percent), with 93 percent stating that they would increase spending if ROI improved. The majority of marketers surveyed devoted less than 20 percent of their digital advertising budget to mobile marketing campaigns (68 percent).

“On mobile, click-based ad units aren’t valid options for mobile marketers focused on increasing ROI,” said David Daniels, CEO of The Relevancy Group. “Mobile advertising requires a dramatic shift that is both focused on and respectful of the user – honoring a good experience with meaningful engagement.”

The study also reported that 73 percent of marketers looked at improving mobile ROI as a priority, with 53 percent viewing building a mobile social community and increasing email sign-ups (54 percent) as major goals for their mobile campaigns.

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