LoopMe: companies will spend $500 million a year on mobile advertising

The focus in marketing is shifting from television to mobile. Mobile advertising budgets are growing, and soon the figure of $ 500 million will become the annual norm, says Stephen Upstone, founder of the LoopMe video advertising platform. He told about this at the Casual Connect Asia event.

Big companies are already spending huge sums on mobile advertising. As an example, Upston cited the recent story of supermodel Kate Upton, whom the developer of Machine Zone attracted to advertise his game.

Spending will only grow, he is sure. “We believe that there will be large customers – both from the gaming industry and from well-known brands – who will spend up to $500 million, or even up to $1 billion each on mobile advertising,” Upston says.

Why video advertising? Other formats simply do not provide the same conversion rate, and therefore are uncompetitive. This is especially true for games – in their case, “static” advertising loses to video clips with a crushing score.

“They [static banners] are immediately forgotten,” Upston notes.

Given the situation in which a huge flow of funds comes from one project (as in the case of Clash of Clans, which has been the undisputed leader of cash tops for many months), and the market is crowded, it is logical to assume that companies will promote their projects more and more aggressively, spending more and more money.

And all these expenses will be concentrated in mobile, since it is currently the most promising advertising platform.

“This is the reality,” Upston sums up. “Many shoppers, especially millennials, don’t watch TV at all anymore.”

A source: http://www.gamesindustry.biz

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