SOURCE: MediaBrix

MediaBrix

August 15, 2012 09:00 ET

Survey Reveals Inadequacies in Monetizing Facebook Apps and Mobile Apps

New Findings From MediaBrix Highlight the Need for Immersive, Integrated Ads on Social and Mobile Platforms Where Consumers Do Not Prefer Standard Online Ads

NEW YORK, NY--(Marketwire - Aug 15, 2012) -  According to a new survey conducted online in July 2012 by Harris Interactive on behalf of MediaBrix, only 28% of Facebook app users1 prefer to see standard banner ads in Facebook apps and 72% prefer to see immersive and interactive ad units. Additionally, 40% of smartphone owners prefer to see standard banner ads in mobile apps and 60% prefer to see immersive and integrated ad units in mobile apps. Immersive and integrated ad units include those that offer people virtual rewards or currency and interactive video ads that occur during natural breaks in the app or game.

Given that standard banner advertising comprises a significant amount of advertising running across social and mobile apps, the survey findings indicate that there are inadequacies in the way that social and mobile developers are monetizing. Additionally, the survey findings reveal that the digital advertising industry needs new creative advertising formats for social and mobile platforms to keep with consumer preferences.

The MediaBrix survey was conducted at a time when consumers are rapidly adopting Facebook apps and mobile apps. According to the survey, 33% of Facebook's one billion users say they have used an app on Facebook in the past twelve months and 65% of Facebook app users say they have played a game on Facebook in the past twelve months. According to recent figures from The Wall Street Journal, more than 45 billion apps have been downloaded, with free and paid apps for the Apple and Android platforms registering explosive growth.

The survey results also reveal consumers' preferences towards video advertising in social and mobile apps. According to the survey, only 37% of Facebook app users1 prefer to be shown pre-roll ads in Facebook apps and 63% prefer to either initiate the video ad or have it shown during a natural break in the game or app. Similarly, only 38% of smartphone owners prefer to be shown pre-roll video ads in mobile apps and 62% prefer either to initiate the video ad or have it shown during a natural break in the game or app.

"People are turned off by standard online advertising running in social and mobile environments," said Tamara Bousquet, executive media director, MEA Digital. "The social and mobile advertising solutions that are going to work are those that offer a unique and interactive experience for consumers and cater to a good user experience."

The MediaBrix survey also found that social and mobile app users prefer free apps that are ad supported. According to the survey, 87% of Facebook app users1 prefer free Facebook apps versus 13% that prefer paid apps that contain no advertising. Of those Facebook app users that prefer free Facebook apps, 83% prefer to keep apps free with relevant advertising that appears during natural breaks in the game or app and 17% prefer to keep apps free by making in-app purchases, including virtual goods or virtual currency.

Also according to the survey, 61% of smartphone owners prefer free mobile apps and 39% prefer paid apps that contain no advertising. Of the smartphone owners that prefer free mobile apps, 88% prefer to keep apps free with relevant advertising that appears during natural breaks in the game or app and 12% prefer to keep apps free by making in-app purchases, including virtual goods or virtual currency. The strong customer preferences towards free apps supported by advertising highlights the importance of in-app social and mobile advertising.

Consumers prefer free social and mobile apps that are ad supported, but they do not prefer banner or pre-roll video advertising in social and mobile environments. Therefore, social app and mobile app developers cannot continue to rely on standard advertising patterned after web-based models as a way to monetize their apps. However, the study suggests that they should incorporate immersive advertising units to monetize and also to engage consumers in a way that keeps with their preferences.

"These survey findings confirm standard online banners and pre-roll video ads won't cut it in today's highly social and mobile world," said Ari Brandt, CEO, MediaBrix. "If social and mobile platforms aren't running interactive ads to achieve consumer engagement, then they are missing a huge opportunity to monetize with Fortune 500 marketing dollars."

Survey Methodology
Harris Interactive conducted an online survey in the United States on behalf of MediaBrix from July 23-25, 2012 among 2,236 U.S. adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Tiffany Sumner, Director of Marketing Communications, MediaBrix, at tiffany@mediabrix.com

About MediaBrix
MediaBrix (www.mediabrix.com) powers an immersive brand advertising platform for social and mobile apps. The company offers Fortune 500 marketers a suite of advertising products that include video, social sharing and other interactive features, allowing them to reach a highly engaged audience where they are most receptive to a brand's message -- in social and mobile apps and games. MediaBrix also provides marketers with in-depth analytics on 30 key points so they can gain visibility into brand performance and optimize campaigns across all of the company's products and multiple platforms effectively. Hundreds of top brands, such as Proctor & Gamble, Samsung and Coca-Cola, and the world's largest app developers, such as King.com and 50cubes, leverage the MediaBrix platform to provide user-friendly brand advertising experiences to more than 200 million people on social and mobile apps. MediaBrix is based in New York with offices in Los Angeles and Chicago.

1 Facebook app users include those who have used an app on Facebook in the past 12 months. 

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