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Media agencies to divert 15% of digital budgets to mobile next year, says IAB

Media agencies are upping their mobile investment, with an average 15 per cent of total digital budgets to be diverted to mobile next year, according to the latest research from Internet Advertising Bureau (IAB) UK.

The sixth year of the annual survey, conducted alongside research agency Work, saw over 300 media agency employees from 12 agencies respond to questions around mobile advertising, with a focus on agency understanding, as well as client structures and barriers.

It was revealed that 40 per cent of respondents stated that new budgets were being allocated for mobile next year, and while the IAB was unable to estimate the average size of those budgets, it did reveal that an average 15 per cent of total digital spend was being diverted to mobile.

Meanwhile, the amount of people that felt they had an understanding of mobile has increased by 28 per cent on last year, to reach 64 per cent.

However, client understanding continued to prove a challenge for almost two thirds of respondents (65 per cent), although that understanding was also increasing - up by 14 per cent since 2011.

Despite this, only 40 per cent of media agency employees said that mobile was a regular part of a client proposal, yet a fifth (20 per cent) did reveal that mobile was now a regular part of their business.

Alex Kozloff, head of mobile for the IAB, was enthusiastic about the growth in mobile budgets within media agencies, however she warned that it was “evident there is still work to do around mobile privacy and brand safety and we hope that our recent work in this area will help both the industry and consumers understand this issue better.”

The study also discovered that nearly half (48 per cent) of respondents claimed to have ‘no experience’ of mobile privacy and that only 39 per cent said the same when it came to responsive web design.

NFC and native advertising were also highlighted as the most exciting developments within the mobile space looking forward to 2014, according to the survey.

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