Mobile Ads Cost More, But Have Higher Recall Rates Than TV

If you can trust Verizon Wireless (NYSE: VZ) on this, they say small banner ads on a tiny cellphone screens can produce the same level of brand recall as a typical 30-second TV spot. Stephanie Bauer Marshall, Verizon Wireless’s mobile advertising manager who spoke at the Mobile Advertising Degree conference in Los Angeles yesterday, said they believe this to be true based on several research reports, MediaPost reported. Bauer Marshall said she was “blown away” by the data that cellphone banner ads have click-through rates that are “exponentially higher” than online banner ads. She said online rates hover around 0.3 percent, while mobile banners can be 2 percent or higher. Because of this, Ben Kennedy, director of business development for GroupM Kinetic’s mobile advertising operation, said mobile CPM’s (cost per thousand) can be higher on average for mobile than other media because of a high level of engagement. Currently, mobile CPMs range from $20 to $30. Although it is a positive sign that Bauer Marshall was pulling the information from a wide range of sources to get the most accurate data, a need for more transparent reporting is often given as the reason for why the industry is slow to take off. The article also quoted Dag Olav Norem, a senior analyst at M:Metrics, who said only 20 percent of U.S. subscribers receive a marketing message by SMS during any given month, whereas in Europe it’s up to 75 percent. But with higher volume, comes lower response rates. In the U.S., 12.4 percent of users respond to messages, compared to Europe where the response rate is 4.9 percent.