Mobile operators and advertisers don’t know what consumers want, finds study

It seems that the divide between what mobile advertisers deliver and what consumers want is broadening.
According to new research from mobile operator Unlockd, based on a survey of 100 mobile operators, 100 advertisers and 1,000 UK consumers, mobile users are becoming increasingly more disconnected with mobile ads that aren’t well targeted. Meanwhile, advertisers believe they are delivering a positive experience, adding further to the divide.
Mobile advertisers and consumers want different things
85% of advertisers think that the mobile advertising experience is positive for the end user, with just 3% admitting that it could be negative. Half of advertisers who believe that it is positive, believe that’s because products are advertised relevant to the end user.
For mobile operators, it’s a similar story with 82% considering it a positive experience.
However, consumers don’t agree. Just 47% of them consider the experience to be positive. For 39% of consumers mobile ads are irrelevant and lack an understanding of the individual. One of the main reasons cited for a negative attitude towards mobile ads is the sheer volume of mobile advertising (40%) as well as a poor or irritating format (36%).
Interestingly, mobile operators are less optimistic about the future of mobile advertising, despite it’s phenomenal growth. This year alone, $100bn are to be spent in digital advertising channels. That’s 51% of total digital ad spend.
Around 20% of operators fear that a lack of measurement and ROI may be a limiting factor. Two-fifths of operators are hoping that mobile advertising could be a revenue driver for them over the coming five years.
Enter the era of value exchange. Concepts such as offering free lives in game apps or exchanging coupons and other items for advertising views have become popular among advertisers and consumers alike.
53% of over 30-year-olds and a quarter of those aged 16-29 years would be happy to pay a lower monthly bill as part of a value exchange model. However, mobile operators aren’t taking full advantage of it. 54% of them said they already offered a similar scheme and 15% weren’t interested in engaging in such a proposition.
Matt Berriman, CEO, Unlockd, writes:
matt berriman

“Operators will change the game; generating new revenue streams and reducing churn. Advertisers, mobile operators and brands should focus on getting ahead of the crowd by partnering with solutions that don’t just allow them to level up to competitors, but help them lead the charge to propel the industry further forward.”

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