I think the mobile era has extended the path to purchase, so it's no surprise that mobile ad spend has exploded recently. I think the introduction of mobile has given the consumer the opportunity to be more diligent in their research process, lengthening that portion of the purchase decision process. Every business is different, but this can be measured. As a dealer, has your desktop traffic been cannibalized by mobile over the past several years? Or have you instead seen an increase in total traffic, with the lift primarily attributable to mobile or tablet devices? How have sales changed in that time?
The author states that mobile ad spend is forecasted to grow to account for 72% of all digital ad spend by 2019, adding to the sexy appeal of this new 'mobile era'. I think mobile has been portrayed as the new, flashy, hip trend in this industry. "You need to be spending ad dollars on mobile" they say. Yet what about the value of mobile? How many businesses who advertise with Google/Bing are sophisticated enough to measure the return from their mobile ad program (vs other devices) and then use this information to adjust their budgeting. Most are not.
How many dealers here have identified the financial performance of mobile vs desktop vs tablet traffic. How many dealers know what impact shifting x% of their media budget towards mobile ad programs will have on their overall profitability? There is value in mobile advertising to a business and I believe it can and should be an integral part of a dealership's search marketing program, but those who do not take the time to evaluate the return on that media spend will simply perpetuate the inefficiencies of their search program.
I think the true reason mobile ad spend has grown so rapidly is really due to a combination of a lack of accountability in tandem with networks such as Google & Bing making it progressively easier for less sophisticated advertisers to 'accidentally' opt their marketing dollars into mobile.
I like to think that the industry will get a little bit wiser over the next few years, and reach a point where advertisers are quicker to question the incremental business benefit of a dollar spent on mobile search vs on desktop/tablet.
Food for though, what impact do you think articles such as these have on this mobile trend? Do you think they have influenced the increase in mobile spend? It's similar to the omnichannel trend in the retail world right now. At the end of the day, who is profiting off the trend? The advertiser? Vendors?
Good article to read (unrelated to automotive):
http://blog.minethatdata.com/2015/03/lands-end-sales-2013-vs-2001.html
