Research

72% of SMBs Expect to Spend More on Mobile Ads

October 10, 2012

45 percent of customers say they’re more likely to visit businesses that respond to their reviews

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A new study suggests that more and more small and medium-sized businesses (SMBs) are spending more and more money on mobile advertising – and that they do so in hopes of generating new leads rather than just getting clicks or impressions.

According to mobile ad firm Pontiflex and research and consulting firm Borrell Associates, 72 percent of SMBs are planning to increase or maintain mobile spending over the next 12 months. Only 4 percent of SMB owners said that they expect to decrease spending. Of the SMBs who plan to increase ad spend, 32% of SMBs plan to increase their mobile ad spend by 11-20% over the next twelve months.

 

 

 

Moreover, 27 percent prefer to pay for sign-ups (lead generation): ways in which SMBs can gather, say, the e-mail addresses, social networking handles, and phone numbers of people interested in the business. Meanwhile, 19 percent like to pay for mobile ad clicks, and only 16 percent prefer to pay for mobile banner ads (impressions).

 

 

The results of the September 2012 mobile and social advertising survey – which featured over 1,300 SMBs as respondents – demonstrate that businesses are increasingly recognizing the value of mobile marketing channels. The study also suggests that businesses are seeking creative new ways to drive revenue from local customers – even if this means putting more money into their mix of mobile advertising efforts.

“Mobile advertising is growing, but hasn’t kept pace with the rapid adoption of mobile devices,” said Pontiflex CEO and co-founder Zephrin Lasker. “This survey shows that SMBs need real returns from mobile advertising, and CPC (cost-per-click) and CPM (cost-per-mille) pricing models are just not working for them. SMBs want to use mobile ads to grow their businesses.”

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