According to the latest report from the Mobile Marketing Association and Warc, APAC-based mobile marketers are less inclined to continue to use display ads over the next five years. The State of the Industry: Mobile Marketing in Asia survey finds that whilst 70% of marketers currently use display ads, only 44% plan to do so by 2020. Meanwhile, the importance of content-rich ads is rising from 33% this year to 49% in 2020. Loyalty and coupon schemes and app development are also poised to increase. Demanding consumers who can easily choose to turn off ads using ad blockers are contributing to a significant shift in delivering advertising that is innovative and engaging.
Mobile display ads losing ground to content
In addition, location-based mobile marketing is seen as a key technology by APAC advertisers. Mobile wallet and gaming as well as augmented reality are also poised to grow over the next five years.
Location-based ads continue to be top focus for marketers this year
65% of APAC marketers now realise that mobile advertising is “very important” to their clients and 39% believe it also be “very effective”. However, mobile marketing budgets are still not adequately allocated. The majority of brands (66%) are allocating just up to 10% to mobile marketing efforts.
Clients marketing budget mobile advertising allocation
Marketers identified multi-screening (68%) as a top trend among consumers, followed by mobile payments (57%), video (51%) and photo sharing (32%). Interestingly, photo sharing as well as video games have remained fairly stable over the last three years, signifying a strong continued interest among consumers.
Consumer behaviour trends
Social media (85%) continues to lead as the most important mobile marketing channel, followed by online search (60%).
Perhaps unsurprisingly, Singapore is seen as the most innovative market for mobile with two in five marketers highlighting it as such. India ranks second at 36%, followed by China (34%).
Most innovative markets in mobile advertising
Whilst growth in the industry is strong, it also faces a wide host of challenges. Marketers believe lack of skills (40%) to be a dominant barrier to entry to mobile marketing. 33% believe that reliable metrics and consumer privacy concerns present problems.
Barriers to growth of mobile marketing in APAC
Rohit Dadwal, Managing Director, MMA Asia-Pacific, confirms that keeping the consumer at the forefront when advertising via mobile will be crucial. He says:
“The increasing focus on the consumers and what they want – which is compelling, refreshing content on the go – is important because mobile’s distinct advantage lies in its immediacy and proximity to the consumers. It puts power in the consumers’ hand wherever they go, giving them the choice to be social, to share, capture, augment, and purchase – all at the touch of a button. The findings from this third study with Warc signal that brands and marketers must continue riding on the momentum of mobile by sustaining an integrated approach and challenging creative boundaries.”