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'In-App' Ads More Effective than Mobile Web Ads: Compete Survey

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June 17, 2011

'In-App' Ads More Effective than Mobile Web Ads: Compete Survey

By Rajani Baburajan, TMCnet Contributor

Smartphone users have better recall of in-app ads than ads they see while browsing the Web using their mobile browser, according to a Compete survey.

According to the survey, around 52 percent of smartphone owners recall ads they encounter in mobile apps. Around 40 percent of smartphone users notice ads while surfing the mobile Web. This is a significant difference between in-app and mobile browser ads.

The difference in viewing is more among iPhone (News - Alert) users, with 65 percent recalling in-app ads and only 33 percent recalling mobile browser ads.

The findings are part of Compete's Q1 2011 Smartphone Intelligence survey.

“This data is important as advertisers and app developers, among others, contemplate the evolving mobile advertising opportunity,” said Danielle Nohe, director, technology and entertainment for Compete, in a statement.

“If the behaviors of iPhone and Android (News - Alert) users, who have more experience interacting with different forms of mobile advertising, are indicative of where the industry is headed, we're starting to see what forms of advertising could be most effective moving forward,” Nohe added.

There is a significant difference of viewing ads among different brands of smartphone users. Considering both in-app and mobile browser ads, Android users have the highest mobile advertising recall, with 55 percent reporting they've seen some form of mobile advertising. For iPhone users, that number drops to 51 percent. Only 22 percent of BlackBerry (News - Alert) owners recall some form of mobile device advertising.

The Compete survey said recall of text messaging/SMS ads is lower still among smartphone users. Around 27 percent of iPhone and Android users recall receiving a text message/SMS ad.

Recently, a TMCnet report said the online advertising industry is growing at a CAGR of 11.4 percent during 2007-12. While it will be popular in the developed world, mobile advertising will gain maximum traction in the emerging markets of Asia, especially India and China. The key driver of this growth will be the high rates of mobile penetration in the region.

Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Stefanie Mosca

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