Flurry: Advertisers under-spending on mobile

Tools

Although U.S. adults now spend more time each day on mobile devices than they do with traditional print media, advertisers continue to allocate a disproportionate amount of their spending on newspapers and magazines, according to new data issued by mobile application analytics firm Flurry.

flurry charts

Click here to view all of the charts from the Flurry report.

Marketers devoted 43 percent of their 2011 spending on television campaigns, followed by print at 29 percent, the web at 16 percent, radio at 11 percent and mobile at just 1 percent, Flurry notes. But while American consumers devote 40 percent of their media time to television viewing, mobile now follows at 23 percent, ahead of the web (16 percent), radio (9 percent) and print (6 percent).

"Comparing where usage and spending vary most, one notes severe over-spending in print advertising and even more severe under-spending in mobile," Flurry vice president of marketing Peter Farago writes on the firm's blog. "Web usage also shows sizable under-investment, relative to platform usage, though not as dramatically as seen on mobile. In short, despite the fact that mobile advertising is growing, the platform is far from getting rational levels of spending compared to other media."

Flurry believes the disparity is the result of the mobile platform growing so rapidly over a brief period of time. "With the iOS and Android app economy only three-and-half years old, Madison Avenue and brands have yet to adjust to an unprecedented adoption of apps by consumers," Farago states. "Further, the mobile advertising ecosystem remains nascent, without sophisticated platform tools. Concepts of audience measurement and segmentation on mobile are still forming, and mobile lacks the kinds of systems that agencies take for granted on the web."

Flurry's AppCircle ad network identifies females and males between the ages of 25 and 34 years old, with higher levels of disposable income and a bachelor's degree or higher, as the U.S. demographic segment that most strongly interacts with mobile ads. Earlier Flurry analysis revealed that households with Apple (NASDAQ:AAPL) iOS and Google (NASDAQ:GOOG) Android smartphones are 50 percent more affluent on average, bringing in $66,000 a year compared to the average U.S. household income of $44,000.

For more:
- read this Flurry Blog entry

Related articles:
Report: Google captured half of U.S. mobile ad revenues in 2011
Jumptap: Rich media ad formats goose click-through rates
Forecast: U.S. mobile ad spending to reach $1.23B in 2011
Smaato: Worldwide mobile ad fill rates drop 8% in Q3 2011