Mobile Habit a News Opportunity
The exponential growth of tablet and smart phone ownership is for global media the only way forward. ‘News’ is a leading use of mobile devices, second only to email and double that of shopping (for now).
And it gets better – despite being able to freely access news sites and apps, one-fifth of mobile news readers have paid digital subscriptions. Users also engage with content and display advertising, click-through, and purchase at substantially higher rates than users viewing conventional sites on desktops or laptops. (Pew Research Centre, 2012)
According to a survey commissioned by The New York Times examining cross-platform behaviours of news consumers, established media benefit more from mobile devices than web native or other digital sources do. Established media outlets generate more readers at a rate of 52% and 56% for smart phones and tablets respectively compared to 36% and 39% for web native news sources. (Sonderman, 2012)
Despite this most obvious of opportunities mobile advertising is still negligible for most news organisations. It’s true, nobody has yet “hit the jackpot” (PEJ director Tom Rosenstiel) but as Rick Edmonds (2012) outlined “… that is no reason to walk away from the platforms.”
Case in point, according to the latest AIB report (conducted by PricewaterhouseCoopers) advertising on mobile devices in the UK has grown a staggering 132% in the first half of the year to £181.5m. This figure comes to light just four years after the sector struggled to attract £25m. Forecasts are now putting UK mobile spend at as much as £511m for the full year.
Jamie Matthews, chief executive of Initials Marketing, believes the scope for growth for mobile marketing remains massive. “The £500m mark is just the start,” he says.
“Facebook is racing to develop a mobile ad strategy to tap into its 550 million monthly mobile users, and more than half of big companies do not yet have a coherent mobile marketing strategy. I would expect mobile advertising to continue to grow at a staggering rate for some years yet.” (Matthews and Sweeney, 2012)
In summary, there is huge potential for news business to become largely mobile – and more importantly profitable! The time is now.
For more information about how your organisation can create mobile advertising revenue, read about the NEW Mobile Advertising Application ADONnews inXcess is launching in Australia.
Edmonds, R (2012) www.poynter.org, “Mobile news habit grows, creating new business opportunity with old challenges” http://www.poynter.org/latest-news/business-news/the-biz-blog/189727/mobile-news-consumers-have-become-a-business-opportunity-media-organizations-cannot-ignore/
Sweeney, M (2012) www.guardian.co.uk, “Mobile advertising hits £500m in 2012”, http://www.guardian.co.uk/media/2012/oct/09/mobile-advertising-500-million-pounds-2012)
Pew Research Center (2012) ‘The Future of Mobile News’. http://www.journalism.org/analysis_report/future_mobile_news
Sonderman, J (2012) www.poynter.org, “Survey: Americans turn to established media for breaking news, mobile”, http://www.poynter.org/latest-news/top-stories/190586/new-data-show-shifting-patterns-as-people-seek-news-across-platforms/