Thursday, 21 May 2015 17:31

Shift to digital fuels increases in mobile advertising spending

Image courtesy of Stuart Miles, Image courtesy of Stuart Miles,

The rise and rise of the digital marketplace has fuelled an increase in mobile advertising spending in the Australian financial services, automotive and healthcare industries.

A study of global brands with a combined budget of $7 Billion, in all major industry sectors and 13 countries and regions by Marin Software, found that in Australia, mobile banking led the way in finance mobile ad spending in the first quarter this year – with 67% of consumers clicking on a mobile banking ad.

Globally, mobile banking users are predicted to spend $1.75 billion by 2019.

According to the survey, Australian financial brands spent 14.6% more on mobile ads in the first quarter of this year than they did for the same period in 2014. This represented a 24% year-over-year increase in mobile ad impressions and received 8.5% increase in clicks during this time.

Marin managing director APAC, Jay Revels, said increased demand for fast mobile banking and payment services, has expedited interest and demand for mobile financial services delivering convenience and easy ways to pay.

As consumers lives become more mobile, Marin predicts financial brands will focus on creating mobile-first apps, delivering speed, security and accessibility for almost any transaction.

“We predict financial services companies will spend more on mobile ads than desktop ads by the end of 2015”, Revels said.

Marin reveals that healthcare brands are embracing the so-called global ‘fittech’ trend, with 33% consumers never remove wearable tech (eg FitBit, JawBone Up, Smart Watches), while 20% want 24/7 contact with their doctor.

According to Marin, healthcare brands spent approximately 13% more on mobile ads in Q1 2015 than a year earlier, and there was a 27.5% year-over-year increase in mobile ad impressions and over a 10% increase in clicks during the same quarter.

And, Marin predicts consumer adoption of health wearables such as fitness trackers and smart watches will accelerate in this year as more of these highly anticipated devices hit the market. Says Revels, “Increasing interest in tracking immediate, on-the-go fitness and health data has driven huge growth in consumer fitness wearables, mobile health trackers, making this is a key focus for Australian health brands and marketers.”

In the automotive industry, Marin says pre-purchase research is essential for the industry as 33% of auto buyers “start their path to conversion to a mobile ad.”

Automotive brands increased their spend on mobile ads by 10% in Q1 2015, compared to the same quarter in 2014, and there was an 11% year-over-year increase in impressions and an 8.8% increase in clicks during the same quarter.

Marin predicts this could drive automotive mobile ad spend to reach parity with desktop by the end of year 2015.

“Consumers increasingly use smartphones at dealerships to research and validate brand choices pre purchase, driving a surge in mobile auto app usage in 2015,” Revels says.

“As automotive brands recognise the importance of mobile in the product research and conversion lifecycle, we’ll see a spike in activity with brands continuing to invest in mobile ads.”


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).



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