Social networks are waking up to mobile advertising. During its January 2013 earnings call, Facebook reported that mobile accounted for 23 percent of its ad revenues in the final quarter of 2012. Twitter got serious about advertising last year as well.
Big brands are responding to the level of engagement social media provides with mobile customers. CMOs are overcoming distrust of social media and reorganizing marketing operations to become faster to respond and more flexible on measurement. Brands across major verticals are following retailers' lead by using mobile social advertising to drive brand awareness and specific promotions.
Social networks must understand each vertical's advertising requirements. Social networks will be in fierce competition to win ad dollars in 2013. The winners will invest in building ad sales operations aimed at gaining deep understanding and awareness of each industry vertical.
"Mobile advertising on social networks will remain in its adolescence until current format preferences evolve," said Jason Armitage, Yankee Group Principal Analyst and author of the report. "The role of display ads on social networks is contentious, and CMO skepticism of social advertising's value is even more marked when it comes to small screens. Future investment will focus on utilizing social recommendations and content marketing to drive awareness and advocacy for brands. Although demand generation using mobile social advertising is still in experimental stages, current tools provide a compelling opportunity to engage and communicate with smart device owners."
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