Velti “State of Mobile Advertising” Report: iOS, AT&T, Wi-Fi Are Winners


ADOTAS – The latest monthly State of Mobile Advertising report from mobile advertising services provider Velti landed yesterday, revealing, among other things, that the average mobile transaction amount had increased by 9 percent over the last three months, Sprint is edging in on Verizon to possibly become the second-biggest mobile carrier behind a still decidedly dominant AT&T, and wi-fi is far more popular among mobile users than carriers (75 percent of impressions came from wi-fi in May, 25 percent from carriers).

The amount of money people are willing to spend over mobile devices is ticking up steadily over the last few months, but as of May it’s still a not-very-whopping $3.22. Velti’s analysts decided users were growing more comfortable spending on their mobiles, but the report saw the most popular mobile purchases as in-game currency, donations, physical goods and software downloads. And while Sprint and Verizon are now tied for mobile market share at 23 percent apiece, AT&T still holds 50 percent of the market. (Those figures are based on impressions.) The report singled out the performance of iPod Touches, which it notes is used largely by a young demographic, and which nabbed more impressions in May than all Android devices combined as well as more than the iPad (14.9 percent of impressions went to iPod Touch, 13.4 percent to iPad). After a 2011 in which Android and iOS remained pretty close in impression volume by device, iOS continues to gradually pull ahead, now netting 59 percent, up from 54 percent in April.

Adotas spoke with Velti CMO Krishna Subramanian over the phone today, to discuss some of the trends he’s seen since the company started issuing these monthly reports earlier in 2012. “There’s quite a bit of back and forth between iOS and Android,” he said. “Attrition rate on Android happens a lot quicker.” He pointed to the sheer number of places via Android where a user can download an app as one factor in why “people are spending more on iOS. On Android, there are so many different app stores, you don’t always know where to look.”

Subramanian also sees increased emphasis on the mobile web, and less on apps. He used Groupon as an example. “Before, Groupon was pushing a ton of people to download their app,” he said, but now, they’re not so insistent. He said he sees more of an emphasis on HTML5 for better-functioning mobile websites, and added, “As carrier infrastructure becomes stronger, we’re going to see more mobile web.”

Subramian underlined another trend among advertisers — to develop mobile-specific strategies instead of just transposing their online campaigns to mobile. He pointed to a GoDaddy’s Super Bowl TV spot, which allowed users to scan a QR code to get a “racier” version of the ad. “All of a sudden, that ad is becoming content,” he said. Something like that, he said, uses mobile in “educating consumers” and “making the advertising relevant, so it becomes content.”

The full May report is available for download at the Velti website.


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