As the number of global smartphone users continues to explode past 2.4 billion, many advertisers are faced with increasing pressure to adapt to the changing environment and invest in some form of mobile advertising campaign. However, large, well established companies are reluctant to change their ways due to the relative youth of the mobile platform and the expenses involved in creating a new strategy. Indeed, some of the most successful mobile advertisers (Facebook, Twitter, Google) went through extensive rounds of trial and error until they finally arrived at a model that works; a method that is proving to be too costly for some companies to justify.
Another problem that mobile advertising faces is its lower click through rate (CTR) relative to other internet surfing platforms. While CTRs for ads placed in the top position are very similar, the CTR for mobile ads falls more than 40% when moved just one position to number two.
Despite the obstacles facing mobile advertising, there is indisputable upside to shifting advertising dollars from more traditional sources (specifically print) to the mobile medium. According to a recent study advertising dollars spent on print media relative to the amount of time consumers spend looking at print was 18% to 4% respectively. In contrast, the amount of advertising dollars spent on mobile was a measly 8% compared to the 24% of consumer time spent on the medium. This huge discrepancy proves that there is an opportunity for advertisers to capitalize on shifting consumer sources of media; if they can bare the costs associated with the change.