Most UK consumers are finding mobile ads on their smartphones, tablets and other devices to be much more informative and helpful now than they did at this time last year, according to new report from the 2nd Annual UK Mobile Path-to-Purchase Study released today by xAd, the global location marketplace, and Telmetrics, the leading call measurement technology provider. Results of the 2014 study were compiled by Nielsen from an online survey of 2,000 U.K. smartphone and tablet users focused on the Retail, Insurance, and Telecom categories.
Randomised mobile ads featuring irrelevant messaging are becoming a thing of the past, as brands are analysing factors such as consumer shopping behaviour patterns and real-time location to serve ads that are more personal, relevant and timely. As a result, consumers are clicking on ads more frequently and finding them more helpful as a key tool on their path to purchase. In fact, a third of respondents who noticed mobile ads reported clicking on at least one of them in the past 30 days. As mobile ads continue to improve, brands will continue to see an increase in ad engagement, ultimately resulting in greater influence over their target audiences and a positive impact on their bottom lines.
Relevance is the Most Significant Driver of Clicks and Engagement:
The advertised product must be something the consumer is interested in. In fact, one in three respondents reported that they clicked on an ad because it was something they were interested in or looking for. The importance of geographic relevance, or how close a consumer is to a store where they can buy the product, is also significant. Its significance in determining whether or not a consumer will engage with an ad has grown 40 percent since 2013. Readily available and easy-to-find business contact information was also important. A quarter of survey respondents specified that they prefer ads with phone numbers.
“Through analysing historical and real-time data, brands are now able to serve ads that are much more relevant to consumers,” said Monica Ho, SVP of marketing at xAd. “Accurate location data in particular has enabled brands to serve ads that are of interest to consumers when they’re close to a store or retail location. As we’ve seen, most customers engaging with ads are looking to make immediate purchases, so this can drive significant in-store traffic and sales for brands.”
Consumers Are Becoming More Comfortable with the Free Content “Trade Off”:
As the mobile advertising industry matures, consumers are becoming increasingly aware of the fact that the revenue generated by ads enables their favourite sites and apps to continue producing free content. They’re also becoming more educated on location awareness and the fact that it increases relevance within mobile apps and ads. The vast majority of survey respondents said that they prefer a free website with ads over paying for an ad-free subscription, a sentiment that has increased 41 percent since 2013.
Secondary Actions Are the Strongest Indicators of Purchase Intent:
Secondary actions after viewing an ad, such as visiting a website or store location or calling the business, are the best indicators of purchase intent. Consumers who further engage with mobile ads post-click have a higher purchase urgency, expectation of proximity, and likelihood to convert. The frequency of these post-click activities is therefore a great measure of campaign success. 77 percent of users who took action post-click purchased or plan to do so in the near future and 63 percent were looking to do so within the hour. Not surprisingly, 40 percent of respondents who took secondary actions expected the business advertised to be within 8 km of their current location, once again underscoring the importance of accurate location data in mobile advertising.
“Post-click mobile shoppers are 2x more likely to be looking for a specific location or contact information so advertisers that include this information can help drive more purchase activity,” said Bill Dinan, president of Telmetrics. “Overall, the jump in mobile ad engagement among consumers is a good sign for advertisers who can now benchmark their mobile ad performance against relevancy, timeliness and geographical trends to ensure they are maximising the mobile opportunity.”
About the Study:
The xAd-Telmetrics Mobile Path to Purchase Study is the only comprehensive research report that measures what consumers report they are doing via mobile devices and captures actual preferences and behaviours. Results from the 2nd Annual U.K. Mobile Path-to-Purchase Study are based on data from an online survey of 2,000 U.K. smartphone and tablet users. More details are available at mobilepathtopurchase.com.
xAd is the global location marketplace bringing together buyers and sellers with ad targeting solutions focused on driving in-store traffic and sales. The company is uniquely focused on capturing in-store visitation behaviours for ad targeting, insights, and measurement solutions. The first to visualise real-time foot traffic, xAd customers include 1.5 million advertisers – including direct brand relationships, agencies, ad networks, and other demand side media companies. Connect with xAd at http://www.xad.com, Facebook, Twitter and LinkedIn.
About Telmetrics, Inc.:
Telmetrics is a leading call measurement technology company that powers digital marketers’ use of calls as a cross-media advertising performance metric. For nearly 25 years, Telmetrics has delivered scalable and quality call measurement innovations that reveal the lead generation impact of direct response ad programs. As a proven global technology partner, Telmetrics helps media publishers, agencies and the leading brands in local, mobile and vertical search leverage calls for millions of SMB and national franchises’ ad performance and monetization models. For more information, please visit http://www.Telmetrics.com.
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