Are Mobile Ads Attracting Users?

Lucas Gilmore, “Big 4″ observer
February 14, 2011 /

Despite earlier reports of record sales of mobile gadgets, Deloitte has found that mobile ads do not seem to attract users particularly in UK due to data breach issues.

Its report, ‘Addicted to connectivity: perspectives on the global mobile consumer’ launched in Spain, mirrors a stark level of mobile ads being subscribed to by UK users. Of the more than 30,000 consumers surveyed from across 15 countries, 88 percent in UK ignore mobile ads they receive, with only 9 percent subscribing to the products and services.

In contrast, Deloitte found that 18 percent of consumers in South Korea are taking action with regards to the mobile ads they receive, from which 45 percent intend to gather more information about these mobile ads.

The figure is even optimistic in China where 20 percent of the many who took action with the mobile ads bought the products and services offered.

On the other hand, 36 percent overall were found to delete mobile ads upon receiving them.

The report said consumers’ confidence on buying the products and services offered in mobile ads, which include apps, has been eroded by recent reports of data privacy breach involving applications in mobile gadgets.

Late in December, the Wall Street Journal revealed its findings about how applications in iPhone and Android could transmit a user’s age, gender, location, other personal information and the mobile device’s unique ID to advertising companies without permission from the user.

The report also included factors encouraging consumers to respond to an add. Deloitte said 13 percent of consumers are motivated to click an add by their desire to look for bargains while 8 percent are after free applications and mobile games.

Meanwhile, 7 percent are said to click mobile ads of brands they trust while 6 percent of consumers surveyed are clicking on an ad based on their location preferences.

“Consumers are using their mobile phones in more specific, sophisticated and complex ways which vary depending on where they are in the world,” said Jolyon Barker, global lead for Deloitte’s technology, media and telecommunications (TMT) industry group.

The figures come amid high projections of shipping volume of mobile gadgets this year.

In mid January, Deloitte said 2011 is the tipping point for tablets, including iPad and Samsung Galaxy Pad. The firm projected that 25 percent of the 50 million tablets would be bought by companies.

According to Deloitte, the increased interest among consumers is due to the longevity of the devices’ batteries and the ease with which they install and run applications.

Fifty percent of the 10 million tablets expected to be sold in 2011 will likely fall into the possession of the healthcare and retail sectors, Deloitte added.


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