Article

Stuart Sankey
Stuart Sankey 26 February 2016

How Effective Is Mobile Advertising For FMCGs?

In the UK, total digital ad spend grew by 13.4% in the first half of 2015 and reached £4 billion. Data from the Internet Advertising Bureau (IAB) also confirms that UK Mobile ad spend was up 51% and accounted for nearly 80% of the rise in digital ad revenues.

Why Is Mobile Advertising So Popular With Brands?

Mobile ad spend has risen to £1.08 billion or 27% of all digital ad spend compared with 20% a year earlier.

Clearly mobile advertising is on the rise; its popularity can be explained by the following factors:

  • It has the ability to deliver highly targeted communications
  • Consumers are spending more time active on their phones particularly during evenings and weekends
  • ‘Dayparting’ (breaking the day into parts for advertising purposes) allows you to reach your audience at the best time for them
  • Mobile advertising is a great way to deliver ‘Calls to Action’

Is The FMCG Sector Using Mobile Advertising?

Yes, the FMCG sector was the second biggest spending sector for mobile advertising in the UK in the first half of 2015. The only sector that spent more was travel and transport (16.8% versus 16.1% for FMCGs).

What Challenges Are FMCGs Facing?

How can brands get a quality, engaging ‘brand experience’ to a mobile heavy user? A brand experience that is media-rich but data-heavy? Brand ads are usually slow to load with click through rates of less than 1%.

The rise of ad blocking software means that potential consumers are actively opting out of ads on web pages.

How Can FMCGs Make Their Mobile Media More Effective?

  • Mobile advertising has tremendous potential for FMCGs because it gives them a platform to deliver very effective calls to action. Brands need to adapt to consumer behaviour.
  • Brands should consider using different channels to reach consumers on mobile to deliver their message. For example, there are ‘branded content’ opportunities within publisher sites and Apps.
  • In-app ads versus browser ads: consumers are moving to App usage on mobile. Brands should think about ‘showing up’ in relevant apps for consumer reviews and product discovery.
  • This will mean that brands can get their targeting right and deliver a quality brand message with a strong Call to Action, such as a coupon or a promotion.

Mobiles have given consumers the power to scroll or click away from brands; brands will have to adapt to remain relevant and be heard.

Mobile presents FMCGs with an excellent opportunity to deliver very effective calls to action as well as measurable sales. Quotient (formerly Coupons.com), has recently launched Shopmium in the UK, a mobile first proposition that helps FMCG brands win at Mobile. For more information, contact me at ssankey@quotient.com.

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