Because of rapid expansion of mobile technologies, companies have no choice but to take mobile marketing very seriously as part of their online marketing strategies. If you haven’t started to do so yet, read on…
It’s no longer a question anymore of “if” you should employ mobile advertising and marketing strategies. It’s a question of “how” and “when.” The “When” should be as soon as you can develop a mobile strategy that effectively integrates with your other online marketing strategies.
Why Mobile Marketing: If you are still trying to decide if mobile marketing and advertising should be part of your online marketing mix, consider the following:
eMarketer estimates that 38% of mobile users have a smartphone and 41% will use it to access the web at least once a month. - Morgan Stanley projects that smartphone sales will surpass computers in 2012
- Merrill Lynch projects that smartphones will overtake PCs as the most common Internet access device worldwide.
- Focus.com reports that 85 percent of cellular telephones shipped in 2011 will include a Web browser.
- eMarketer projects that 24 million tablets will be sold this year, adding another important mobile marketing vehicle for businesses.
- eMarketer calculated that U.S. smartphone users are projected to reach 73.3 million by the end of 2011.
Consumer Behavior Changing Rapidly: Consumers are no longer relying on computers to access the web. Today they are using their mobile devices to access the web continually throughout their day. Today’s mobile users depend on their mobile devices for real time access to information tools, promotions, product and pricing research and a variety of social media apps. Location based services have become the norm as part of this growth in the mobile web.
eMarketer reports that consumers spend an average of 50 minutes a day on their mobile devices. Time spent with mobile devices is rising faster than any other media. Mobile Groove reports that it found the average session time for a mobile browser is approximately six minutes. These short sessions which happen multiple times throughout the day require that businesses adjust both their website’s design and their marketing strategy to accommodate these changes in the way consumers access the Internet.
Advertisers Responding: More and more advertisers are spending more of their digital advertising budget on mobile advertising. Three quarters of companies responding to a recent Association of National Advertisers (ANA)- Mobile Marketing Association (MMA) Mobile Marketing Survey intend to increase their mobile marketing spending this year. This year the usage by marketers of mobile marketing is expected to hit a utilization rate of 88 percent according to the Survey.
According to eMarketer, U.S. advertisers will spend approximately $1.23 billion on mobile advertising this year. That’s a significant increase from $743 million spent in 2010. In 2012, mobile advertising expenditures are expected to grow another 47 percent to reach $1.8 billion. By 2015, spending on mobile advertising is now estimated to reach $4.4 billion. Smaato Inc. estimates $5 billion by 2015 (mobileSquared & Smaato White Paper ▪ The USmA: “The United States of Mobile Advertising."
The projections include spending on display ads, search and messaging-based advertising and comprise ads for both tablets and smartphones. Note that the numbers are much higher (11% to 33% per year) than last year’s mobile advertising projections by eMarketer.
Another Potential Driver: Consumers are engaged with mobile advertising. Smaato (see the link to report above) estimates that 49 million mobile users in the U.S. are already engaged with mobile advertising and that 12 million have purchased an item by clicking on a mobile ad.
In fact, a number of studies by Insight Express, MeidaMind and recently by Dynamic Logic have revealed that display advertising is more effective than online display advertising. Dynamic attributes the effectiveness being driven by its relative novelty, the larger proportion of the screen that is devoted to adds relative to online, more focused messaging and content because of screen size and better targeting than more other media.
There’s no turning back the clock as consumers continue their rapid migration to tablets and smartphones. Advertisers are increasing their mobile ad spending to adjust to this trend of mobile web access. As consumers become increasingly accustomed to mobile marketing, advertisers much create more relevant, engaging and creative mobile ads for a more sophisticated audience.
Every business must have a mobile strategy in 2011, no matter how small it might seem. That could range from a mobile-friendly website or mobile app to simply advertising on mobile devices for lead generation or SMS campaigns.” Mike Phillips, Website Magazine
The “If” and “When” questions have been answered. It is up to you and your marketing agency to figure out the “How.” Good luck with that effort.
