Smartphone users spurning ads

Mobile marketing company, Snakk (NXT: SNK) says smartphone users are increasingly ignoring ads on their phones

Mobile marketing company, Snakk (NXT: SNK) says smartphone users are increasingly ignoring ads on their phones. In its Q3 business update the company quotes unsourced research that it says “suggests that Internet users are increasingly becoming ‘desensitised’ to ads on mobile sites and apps.”

Snakk says it is imperative that acceptable click-through rates are maintained and grown to keep advertiser and publisher confidence in its offerings, and it claims to produce mobile advertising campaigns that deliver click-through rates “constantly in excess of [our] competitors or accepted benchmarks.”

It says the industry average click-through rate is 0.62 percent, which means that for a mobile add to be clicked on 62 times it would have had to be seen 10,000 times.

The company says it expects to continue to consistently achieve CTRs that exceed this industry average. In each quarter of the current financial year it claims to have achieved CTRs in excess of 0.95 percent and has set a target of 1.00 percent for the full year.

Snakk’s conclusions about consumer response to mobile ads are somewhat at odds with the results of a recent Mobile Marketing in APAC study published by the Mobile Marketing Association and Warc, and reported in a Snakk blog in December.

Snakk said: “Warc polled 324 marketing professionals in 17 different areas across APAC, concluding mobile initiatives are becoming more effective, prompting an increase in mobile spending from last year. Marketers agree, this higher affirmation for mobile advertising is the driving factor in mobile spending growth.”

And it noted a significant increase in the past year in enthusiasm for mobile phone advertising. “Fifty nine percent [of respondents] find mobile marketing very effective, a 20 percent increase from last year.”

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