Location-based ads top mobile marketing opportunities
Alongside the reduction in advertising spend, the mobile platform is the most disruptive force in media today according to a study conducted by audit, tax and advisory firm KPMG LLP.
Among more than 200 media, marketing and advertising executives polled, 49 percent of respondents indicated the pullback of advertising dollars is the most disruptive force affecting the media business, followed closely by the emergence of mobile devices as personal computers at 40 percent.
The KPMG survey also reports 75 percent of executives believe advertisers will reallocate more than a quarter of their media time and spending away from traditional channels in the next five years, while social networks and mobile marketing are expected to enjoy increased activity. However, despite the growing belief in the marketing and branding power of social networking, 61 percent of executives indicate that fewer than 30 percent of ad agencies have instituted plans to leverage the medium for their clients.
KPMG reports that 65 percent of executives say media companies currently adapt less than a quarter of their content for the mobile platform, while 27 percent believe the current content adaptation rate is between 26 and 50 percent. Nevertheless, 87 percent of respondents say media firms will adapt more content for mobile consumption in the next two years. Meanwhile, 48 percent of respondents believe location-based advertising represents their best mobile marketing opportunity--games and video each received 14 percent of the vote. "Not only will [social networking and mobile marketing] continue to see increased utilization by marketers and advertisers in the near future, but they will continue to capture increasing attention from the investment community," said KPMG partner Brian Hughes in a prepared statement.
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