From within our own mobile marketing bubble it may be hard to believe there are companies that are still outside and haven’t yet gotten that old-time mobile religion. But according to Adobe’s latest report surveying over 1800 marketers worldwide, 45% say that they have neither a mobile-optimized Web site or mobile application. This rather remarkable laggard index comes even when Adobe also saw a doubling of traffic from mobile devices to the broad sample of sites that it observes.
Of course, the glass is slightly more than half full when it comes to mobile.
- 21% of the marketers surveyed say they have a mobile-optimized Web site.
- 7% are using applications as the main mobile presence for their business.
- 21% are using both.
In benchmarking the actual performance of this investment, however,
- 41% of marketers say their conversion rate from mobile is less than .5%.
- 16% are seeing conversion rates of .5% to 2.9%.
- 18% say they get conversions with a 1% to 1.9% rate.
- 16% convert at 2% to 4.9%.
- 4% of companies with mobile presence say that their conversion is between 5% and 8.9%.
- 5% are seeing conversions of 9% and above.
Adobe says that while 7% of companies are showing a conversion rate below 1%, those companies that are investing in mobile-optimized sites are three times more likely to see mobile conversion rates of 5% or above than those who are using only desktop sites.
Curiously, marketers’ opinions about what drives higher mobile conversions seem to be more susceptible to focusing on bright shiny objects than one would hope. For instance, when asked how effective various mobile tactics are in driving conversions, check-in rewards rose to the top, with 40% of marketers citing them as very effective and 40% rating the tactic as somewhat effective.
Strangely, to my mind, the least effective tactic cited in the survey was a mobile-optimized Web site, with only 24% saying it was very effective. Things like ad promotions, barcoded coupons, and social sharing all rated higher than simply making the mobile experience more fluid and convenient to the user by optimizing against their usage.
All of this seems to suggest that more people than you imagined are still ignoring the mobile migration. But even those companies that believe they are paying attention to this emerging channel may not be paying close enough attention after they check that mobile box.
COMMENTARY: The Adobe 2013 Digital Marketing Optimization Survey received global responses from more than 1,800 digital marketers across North America, Europe, and Asia. With a focus on business-to-consumer and businessto-business commerce, the report explores the key areas in which digital marketers need to excel to ensure success, including mobile, social, personalization, and customer experience.
A recent article from Econsultancy asked whether 2013 will be the year of conversion optimization. In a world where a small uplift in conversion rates can translate into millions of dollars of extra revenue for businesses, would this be the year that companies finally grasp how incremental improvements in digital performance can pay significant dividends?
The survey data suggests that we still haven’t reached a tipping point, even though the evidence below points to a competitive advantage for those companies making this investment.
Figure 1 below shows that the majority of companies surveyed spend 5% or less of their total marketing budget on optimization activities, including agency fees, professional services, and technology. In fact, more companies are now in the lowest tier of spending (5% or less), increasing to 53%, compared to 48% of respondents from last year’s survey.
In total, 86% of companies surveyed allocate 15% or less of their marketing budget to optimization activities, including the 53% who allocate less than 5%. At the other end of the scale, only 3% of respondents allocate more than half of their marketing budget to optimization efforts.
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A recent Adobe Digital Index report analyzing more than 100 billion visits to more than 1,000 websites worldwide revealed that tablets now exceed smartphones in global web traffic. Because consumers spend more time engaging with tablet devices, marketers should be prioritizing tablet-optimized experiences in 2013.
During 2012, the Adobe Analytics business observed a doubling of traffic from mobile devices, and this trend is reflective of many clients. However, almost half (45%) of digital marketers surveyed say their organizations don’t have a mobile-optimized site or mobile application, relying on desktop sites only. Only 7% have built mobile apps, and a fifth (21%) have implemented both a mobile-optimized site and a mobile app. By not investing in mobile channels, organizations risk being left behind as mobile consumers choose a competitor’s mobile-friendly experience.
Separate research exploring digital trends for 2013 showed that while mobile optimization is an exciting opportunity for 43% of the companies surveyed, only 30% consider it a top priority in 2013.
Figure 14 shows that average mobile conversion rates are below 1% for more than half (57%) of companies, including 41% who say they are below 0.5%. Further interrogation of the data showed that companies investing in mobile-optimized sites are three times more likely to be enjoying mobile conversion rates of 5% or above than those who rely on desktop sites. Not surprisingly, those who use both a mobile-optimized site and a mobile app are experiencing even higher levels of conversion.
As Asia consumers come online, they do so most often via mobile devices, leapfrogging the fixed Internet stage as seen in developed markets. It comes as no surprise then that APAC respondents indicate not only higher usage of mobile-optimized websites, but also higher levels of mobile conversion rates. Half (49%) of APAC marketers surveyed say that they enjoy mobile conversion rates of at least 1%, including 28% with conversion rates of 2% or above.
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While large companies are already addressing the rapidly expanding mobile audience, most businesses are only dipping their toe in the water. The reasons behind the slow progress are various, ranging from not knowing where to start, to being bogged down in complex mobile initiatives that eat up a lot of time and budget.
If your organization has just started its foray into mobile, don’t start building a mobile site or app just because your competitors have. Engage with your analytics team and evaluate the mobile device types (feature phones, smartphones, tablets) that are visiting your desktop website and the trending of mobile traffic over the past year.
Bear in mind that low mobile-browser traffic might not necessarily indicate that your mobile audience is small. It could be that your website just doesn’t perform well on smaller screens, and this is driving visitors away.
Don’t build an app just for the sake of it. Focus on the goal of your mobile initiatives, prioritize your company’s needs, and choose a solution that can best address these needs now and into the future.
As the Digital Trends for 2013 report highlighted:
“To move forward in ‘mobile optimization’ means coming to grips with the reality that every experience we offer through digital channels—every web page, shopping cart and piece of rich content—must work well on any device in any location. The customer understands that concessions need to be made for the smaller screen, touchscreen input and slower speed, but they won’t accept unnecessary hassle or delay. Apps are a part of today’s approach to mobile, but they are not a broad answer to this challenge, as use of the mobile web increases daily.”
You download the Adobe 2013 Digital Marketing Optimization Survey Results by clicking HERE.
It's obvious that conversion rates using mobile are pathetic (41% of marketers reported conversion rates of less than .5%), and the mobile advertising experience leaves a lot to be desired, and until marketers can find a way to overcome
Courtesy of an article dated May 3, 2013 appearing in MediaPost Publications MoBlog
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