Display advertising such as banner ads has grown immensely popular on mobile devices, but they may become a less popular venue for advertisers and marketers this year, according to a survey released last week by Trusted Media Brands, Inc., the media and direct marketing company that owns Reader’s Digest.
The survey, which was conducted in December with Advertiser Perceptions and polled 283 U.S. digital/mobile and social advertising pros, reported that less than half — 45 percent — of clients and agencies now plan to use mobile display banner ads this year, down from 63 percent in 2015.
Video and native advertising avenues, meanwhile, could see an elevated mobile presence. 45 percent of respondents said they intend to take advantage of mobile video in 2016, while 46 percent said they planned to use native advertising. Pre- and mid-roll video was cited as the most popular of all formats — 46 percent — for use in 2016.
The reasons for the format change? As it turns out, almost half of agencies and marketers — 44 percent — said video and native ads were less intrusive to mobile users, and about a third — 32 percent — claimed they were better formats for increasing brand awareness, while about the same number — 31 percent — said they were preferred formats for fostering engagement and interaction.
Marketers cited myriad benefits for native and video ad formats. Almost half of marketers — 47 percent— said video ads increased brand awareness on mobile, while 26 percent said video provided a more authentic brand voice and 25 percent believe the format positively impacts lead generation. When it comes to native ads, 31 percent said this format lends a more authentic voice, while 33 percent cited native ads as offering a better user experience.
Current ability to measure the success of native ad campaigns, however, was cited as the new format’s biggest challenge.
“Our survey showed that native gets high marks for giving the message an authentic brand voice and imparting a superior user experience, while the increased brand awareness and engagement of video are considered a top benefit for both marketers and agencies,” said Trusted Media Brands, Inc. chief revenue officer Rich Sutton in a statement. “With video on mobile commanding better CPMs than desktop for many publishers and native CPMs four to five times that of banner monetization, the advantages for these two formats are clear.”
The survey's full results can be found here.
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