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Agencies Losing Out On Mobile

Posted by trinda On May - 7 - 2013

Mobile Ad Spend on the Rise and many Agencies are losing revenue opportunities on Mobile.

A recent post from e-marketer really shows the growth in mobile throughout the UK

Mobile is getting more attention from UK agencies, even as substantial questions remain regarding certain mobile issues and trends. The Internet Advertising Bureau UK (IAB UK) found that in 2012 more than half of agencies reported spending between 6% and 20% of their digital budgets on mobile.

eMarketer expects mobile to account for 16.1% of digital spending in the country in 2013, when it reaches £965 million ($1.53 billion), after nearly doubling since 2012. The UK, with its high penetration of smartphones and tablets, is behind only the US and Japan in the percentage of digital budget allocated to mobile, according to eMarketer.

Seven out of 10 agency respondents reported that lack of client understanding of mobile was holding them back from making a greater investment in the channel.

Even as agencies’ mobile knowledge expands, there remain opportunities and issues many have not yet explored. The greatest percentage (53%) reported having no experience with either responsive web design or mobile privacy. Real-time mobile advertising, near-field communication (NFC) and HTML5 were also areas that almost half of agencies had no experience with yet.

While UK agencies may be a long way from fully leveraging the mobile channel, there is no question it will only become more important to the digital marketing mix over time. Over nine out of 10 respondents expected mobile to be the fastest-growing medium in the next five years.

This report from e-marketer really shows that businesses need education in mobile and digital in general. Agencies that are not able to deliver will quickly need to find a way to bolt these services on to their existing portfolio to quickly capture the client revenue and digital opportunities.

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