Most consumers don't think mobile ads count against data quotas, says Citrix

Most consumers don't think mobile ads count against data quotas, says Citrix

Summary: Marketers, take note: the reach of mobile advertisements has nearly doubled in the last year alone, according to the latest roundup from Citrix.

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The biggest emerging trends taking over mobile could boil down to these three: ads, video, and now wearables, based on the latest data from Citrix.

According to the mobile software company's latest quarterly Mobile Analytics Report published on Thursday, advertisement on mobile devices alone has doubled in reach in the last year alone.

If the past holiday season didn't offer enough evidence, the bottom line for advertisers and marketers, this is the platform not only to watch but to target now.

It's almost a win-win situation -- at least at this point in time -- for brands and consumers being that mobile ads were found to only generate less than two percent of a user’s daily mobile data volume with only one in 20 people seeing video ads.

With carriers such as AT&T pledging to offer businesses with the ability to sponsor mobile data to get their video ads out there, we'll likely see more growth around mobile video ads without any expense to the consumer. (At least not financially on monthly bills. Time and annoyance are other matters entirely.)

Of course, consumers should still be a little wary as AT&T's program, which was unveiled just back in January amid CES 2014. Citrix found that 59 percent of  respondents think mobile ads don't count toward monthly data quotas, which isn't actually always the case.

Mark Davis, senior director of product marketing for service provider platforms at Citrix, explained in the report that that this report should serve as "an early warning system" for both mobile operators in marketing the realities of these situations, both in terms of customer service and strains on the network.

In many regions, consumers now expect wired-like performance on their mobile device and, when they don’t get that performance; their frustration is directed at the operator. But a great subscriber experience is just the start. Operators looking to transform their businesses need to understand data usage such as that detailed in the report, and find ways to translate that understanding into incremental revenue.

Video shared on social media such as Vine and Instagram, primarily between consumers but increasingly being tapped by retail and hospitality brands, has also seen a surge in the last year. That's not too much of a surprise given that Twitter bought Vine in late 2012 for an official debut in January 2013, while Facebook-owned Instagram only introduced video sharing on the photo app last summer.

Still, researchers asserted that video now accounts for 32 percent of all data on social networks, while images continue to hold the lead at 63 percent.

Text, meanwhile, only contributes five percent.

Gaming is also highlighted for its significant growth on mobile platforms, but arguably that one has been more of a mainstay prior to 2013. In Citrix's latest report, approximately 68 percent of respondents admitted they are "addicted" to at least one mobile game.

Finally, one of the most hotly anticipated trends expected to either exceed our wildest dreams or crash and burn this year is wearable technology.

If wearables do indeed go from fad to mainstay, it will be thanks to health and fitness apps. Citrix researchers defended that increased shipments for devices such as FitBit, Nike+, and Pebble, will both prolong this trend while also making a dent on overall network data traffic.

For reference, Citrix hired consumer brands market research firm Wakefield Research to conduct this study, which drew results from anonymously-sourced data traffic on the 3G and 4G networks of the Citrix global tier-one customer base.

Image via Citrix

Topics: Mobility, Apps, Data Management, Health, Social Enterprise

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7 comments
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  • Of coarse it counts, but there is worse

    This is one of my complaints about Google Now. Google +, the New Google Maps and almost every other Google anything.

    BUT Yahoo has gotten into the act and they are even worse than Google since Yahoo refuses to give the users of the Mail App a way to block the advertising (or the porn or the Cryptolocker or Zeus malware embedded in pictures) embedded in the body of emails. Yahoo even make the immediate display (and therefore in the case of Zeus or cryptolocker immediate infection) completely automatic since as soon as the currently displayed message is deleted, the next unread message is immediately automatically opened and whatever attachments are in the body are immediately automatic downloaded and opened.
    CutRightSharpening
  • The real takeaway from this:

    Google is costing you money, not saving you money by offering up deals through ads.
    Joe_Raby
    • Not just Google

      It's not fair to single Google out for this complaint. Any company in the mobile advertising business is also to blame.

      Having said that I wouldn't be surprised if Google was the biggest offender simply because of their market share.
      MajorlyCool
  • Unlimited data plan

    For those that still have an unlimited data plan this is more reason to cling to it.
    MajorlyCool
  • Not just mobile

    Those fatty, Ajaxy Web pages consume your bandwidth like crazy too, though of course even more so when as advertising-laden as these "magazine" sites. Conventional newspapers tend to be even worse offenders at this when they try to cobble together a Web presence. And those ridiculous "mash up" thingies that add a ton of social media fluff gobble up yet more.

    So it is all Web use, not just mobile.

    Where are agencies like the FTC on this? We want compensation!
    dilettante
  • Mobile data killers

    I think much of mobile data killers are made up of apps updating, people downloading large amounts of data over mobile rather then waiting for a home network to do so. Yes, ads can take up data but I think the consumption concerns should be focused on more hoggish data suckers then ads. My gripe is that apps in general do not offer much in the way of text as much as they do video or graphical content. Which uses more data then text. Web sites even use a lot of graphical content these days. Looks nice but does use up data. I don't personal stream video unless I am on a WiFi network like home. I don't find cellular broadband very economical to waste so much data on a video all the time.
    JohnnyES-25227553276394558534412264934521
  • Native ads the answer??

    Been thinking for a while that as mobile ads get more elaborate and funky, it could be a data issue for users. I think that may be another advantage to native mobile ads. I mean, app developers and content publishers have to monetize somehow. Native ads - which are text based - are not doing to be onerous from a data consumption standpoint. I have heard what leaders in the native mobile ads space like Airpush have had to say about this yet, but I'm thinking its just another advantage.
    Andrew Huttle