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It's well-established that despite digital's rise over the past decade, spend on online ads is still disproportionately lower than where it should be in theory.

While there's reason to believe that spend will catch up, the shift of budgets to digital isn't coming fast enough for many publishers and ad networks -- something that is becoming particularly noticeable when it comes to mobile and video.

According to a survey conducted by the Association of Online Publishers (AOP), the top inhibitor to monetization on mobile devices is agency attitude towards mobile. A majority -- 55% and 52% -- of publishers the AOP polled as part of its AOP Content and Trends Census 2012 indicated that ad agencies are the biggest impediments to their ability to generate revenue from mobile and tablet users, respectively.

A related problem flagged by publishers: for mobile devices specifically, a majority believe that many agencies are far too dependent on low-yield ad networks which generate less-than-optimal revenue to publishers.

Similar concerns about agency attitudes and priorities are apparent in the online video space. Online video has exploded in the past several years and purveyors of it are hoping that rapid growth will start to bring TV-like dollars to the space.

In an article published this weekend, paidContent's Jeff John Roberts quoted Matt Minoff, the CEO of online video ad network Selectable Media. According to Minoff, there simply aren't enough ads and agencies are part of the problem. "What holds back advertisers from taking advantage of new platforms is that they have to repurpose creative built for TV. They're utilizing 30 second TV spots online and for mobile," he stated.

Are agencies really to blame?

While there's little doubt that ad budgets will continue to shift online, it's debatable whether the pace at which this shift has been taking place is really something agencies should take the heat for.

Yes, demand for content on mobile is growing, as is the demand for online video. Yes, publishers are investing more in both. And yes, advertisers will eventually need to invest more in these channels if they want to reach consumers. But this isn't an 'if you create the inventory, they will pay' proposition.

The fact that more mobile and online video ad inventory is on offer doesn't necessarily mean that agencies should be scooping it all up. Agencies work for their clients, not for publishers hoping to recoup their investments in mobile and video content. While there is certainly a role for agencies to play in making sure these mediums deliver, publishers will also have to do more than complain if they really want to cut into the $130bn per year pie that is television ad spend.

If publishers and ad networks, for instance, want agencies to get behind mobile, they're going to have to help solve some of the challenges. And if they're going to ask agencies to move beyond repurposing existing ads and develop new native digital ad formats, they need to convince them that the investment will pay off. The publishers and ad networks that do that will be successful; the ones that don't will always be disappointed.

Patricio Robles

Published 27 September, 2012 by Patricio Robles

Patricio Robles is a tech reporter at Econsultancy. Follow him on Twitter.

2380 more posts from this author

Comments (4)

Alan Spurgeon

Alan Spurgeon, Director at Hedgehog Digital Ltd

I have first hand experience with this 'laziness' from agencies to seek out more relevant and better converting ad campaigns.

All too often I see agencies pumping money at display ad campaigns across vast networks.

For a fraction of the cost they could run their campaigns through online publications where they'd see CTR's and conversions outstrip the bulk buys.

However, to seek out and develop these high converting publications they'd have to do some research.

almost 4 years ago

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Michael Essany

The mobile ad industry is growing really fast, but until more sophisticated tools and resources for developers and mobile advertisers enter the picture, growth won't be as strong as it otherwise could be. I do, however, applaud Airpush. Its new SDK is unbelievable in that regard and is groundbreaking in several ways, The SDK, for example, gives us SmartWall - a new mobile ad format that optimizes between multiple sub-formats such as Rich Media, AppWall, Video, and Interstitials. This ad unit replaces static, full page banners in apps that have been a go-to for developers for years.

almost 4 years ago

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Chris Samuel, Manager at Lionize Digital

Lionize Digital is an advertising network.

Why?
- Geniune Adnetwork
- 24/7 support
- Personalized Account Manager
- Competitive eCPMs
- Ontime Payments

about 2 years ago

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sofia santucho, Manager at Adtomatik

I would strongly recommend adtomatik. Amazing worldwide reach and not to mention the ecpm. The best adnetwork I've discovered

almost 2 years ago

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