Summary: Figures show that 90 per cent of marketers will increase their ad spend on tablets in the run-up to Christmas
Global advertising spend on tablets is set to soar over the coming months as the devices continue to generate a higher conversion rate than smartphones, a new report has found.
Advertising agency M&C Saatchi Mobile, which purchases mobile ads and works with a number of the world’s leading brands including Sky, BMW and Dior, found that nine out of ten of its clients in the UK and the US will increase their spend by 25 per cent in the lead-up to the Christmas period.
These firms are increasingly investing in tablet advertising due to the high conversion rates, with the report showing that consumers are four times more likely to click on an ad displayed on a tablet screen than the same one on a smartphone.
“Since the introduction of the iPad, brands and marketers have been trying to work out what exactly it meant for them,” said M&C Saatchi Mobile’s chief executive James Hilton.
“The impact has been far beyond what anyone really expected. This medium blends the best of TV with the best of interactivity. Virtually all brands have seen the benefits of larger screens to engage and be more creative. We have seen a vast year-on-year growth of spend thanks to the heightened engagement and better proven return on investment generated by tablets.”
The study also shows that it is less important to run location-based campaigns on tablet computers than it is on smartphones. Just under ten per cent of tablet campaigns analysed for the research used exact geo-targeting, which M&C Saatchi Mobile largely attributes to the way in which consumers use tablet computers.
As the majority of tablet owners still only use their device at home, there is little point in companies running location-based campaigns. However, the study forecasts that businesses could begin incorporating geo-targeting in their mobile projects following the advent of seven-inch tablets, which will be more portable than the current range of larger tablets.
A number of small tablet computers are expected to be launched over the coming months, with Apple poised to unveil details about its iPad Mini device tomorrow (October 23rd). The new device is expected to feature a 7.85-inch screen, include the A5 processor chip featured in the iPad 2 and run on the new iOS 6 software.
“With Amazon selling a seven-inch tablet for just £129, though, Apple is going to have a real fight on its hands as it attempts to dominate the tablet market in Europe in the way it has until now,” he told the Metro.
Despite the growth of smaller tablets, M&C Saatchi Mobile urges firms to concentrate on learning more about their customers to help create more personalised campaigns, as well as ensuring that their mobile marketing messages are sent at the optimum time of day.