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Marketing

Pandemic will not slow down mobile ad growth: Forrester

September 8, 2020

Mobile ad spending is expected to rebound after 2020. Image credit: Alibaba

 

Even while consumers stay closer to home during the ongoing coronavirus pandemic, many have made smartphones their primary digital devices — and brands should adjust their marketing to meet this important shift.

According to a report from Forrester, popularity in mobile devices has also driven growth in podcasts and voice assistants. While the pandemic has impacted ad spend, Forrester also expects the majority of ad dollars will be spent on mobile.

"Marketers are spending more ad dollars on mobile devices than desktop because consumer usage has shifted," the report said. "But mobile has unique challenges, such as less space for ad placements, fat fingers and measurement headaches."

Mobile marketing
In 2020, Forrester forecasts mobile spends will account for 64 percent of digital ad spend across search, social, display and video.

This does not mean that all brands should invest in mobile advertising without a plan, however. The likelihood of consumers purchasing products or services through smartphones should help determine spending on mobile ads.

Brands in sectors that have longer purchase cycles, such as automotive and real estate, should prioritize ad spend on desktop devices. Mobile ads are still worthwhile for branding and discovery, but will not be as successful for conversions.

Mobile ad spend is expected to increase after 2020. Image credit: Forrester

Marketers should also focus on both short- and long-term goals, and avoiding emphasizing metrics such as return on investment (ROI) over customer lifetime value (CLV).

Mobile ads will also need to evolve beyond banner ads for more relevant experiences for consumers.

Forrester also recommends marketers continue prioritizing visual search over voice search, which has yet to gain traction among consumers for shopping purposes. The importance for brands and retailers will depend on whether consumers use visual searches for discovery.

Podcast power
Podcasts also present brands with opportunities to reach consumers, and this is not limited to running ads on popular podcasts.

Before the pandemic, nearly a quarter of U.S. consumers listened to five or more hours of online audio content a week. After a brief dip at the beginning of lockdowns, this audience has stabilized and shown growth.

Luxury brands are increasingly testing their own branded podcasts to engage loyal consumers on another platform.

In June, LVMH-owned French fashion label Christian Dior launched a podcast series that tells the heritage of Dior Perfumes, giving fans a glimpse inside the origin story of the Dior brand and the fragrances that made the name iconic. The podcast plays on the brand’s heritage and its history in Provence, Paris and Normandy with portraits of the people that helped develop and create Dior Perfumes (see story).

More recently, Italian fashion and leather goods maker Salvatore Ferragamo joined the parade of luxury brands dabbling in podcasts with its own series honoring its eponymous founder and his legend. “The Shoemaker of Dreams” podcast series is narrated by different “friends of the house,” each putting their own spin on a chapter (see story).