U.S. Ad Spending Must Catch up to Time Spent on Mobile

According to new findings from Flurry, U.S. ad spending on mobile in 2011 lagged well behind the actual consumers’ time spent on the medium relative to others.

In 2011, 43 percent of ad spent went toward TV, which claimed 40 percent of consumers’ time spent on media. Meanwhile, 29 percent of ad spend went toward print, which claimed just 6 percent of consumers’ time spent.

The Web attracted 16 percent of U.S. ad spending last year, while the medium claimed 22 percent of consumers’ time spent. These splits were 11 percent and 9 percent, respectively, for radio.

Just 1 percent of ad spending was claimed by mobile in 2011. The medium claimed a whopping 23 percent of consumers’ time spent on media during the year.

“Comparing where usage and spending vary most, one notes severe over-spending in print advertising and even more severe under-spending in mobile,” Flurry notes. “Web usage also shows sizable under-investment, relative to platform usage, though not as dramatically as seen on mobile. In short, despite the fact that mobile advertising is growing, the platform is far from getting rational levels of spending compared to other media.”

Flurry added that the main reason for this disparity is that the mobile app platform has emerged so quickly in a short period of time. Mobile advertising will surge once the mobile platform matures

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According to the company’s data from its AppCircle ad network, the effective cost per mile (“thousand” in Latin), or eCPM, earned by publishers was highest for females ages 25-34, at $12.92. Females were attributed with higher eCPM for ages 25+.

“Using eCPM allows us to consider both branding (e.g., CPM) and performance (e.g., CPC and CPA) advertising campaigns in our calculations to get an accurate read on which mobile audiences monetize best,” according to Flurry.

Publisher eCPM was $8.33 for households earning $60,000-$80,000, and $8.28 for households earning $80,000-$100,000.There appears to be a clear correlation between affluence and eCPMs, according to Flurry.

Bachelor degree holders exhibited an eCPM of $7.92, followed by master’s degree holder (or greater) with an eCPM of $6.51.

“As a total snapshot, our analysis shows that females and males, between the ages of 25 and 34 years old, who have higher levels of disposable income and a bachelors degree or higher, more strongly interact with mobile ads,” according to Flurry.

Source:

http://blog.flurry.com/bid/82171/Upper-Middle-Class-Females-Key-to-Bridging-Mobile-Ad-Spending-Gap