40% Mobile Marketing Annual Growth Forecast
Gail Chiasson, North American Editor
In 2009, under half a billion dollars were spent on mobile marketing and advertising, but over the next five years to the end of 2015, that expenditure will grow at a compound annual rate of more than 40%, according to estimates from ABI Research, New York.
“Compared to campaigns in more traditional media, mobile marketing can be relatively inexpensive,” says Neil Strother, mobile marketing strategies practice director, ABI Rsearch. “Moreover, ads can be highly targeted and naturally paired with rich mobile content that growing numbers of consumers are accessing through smart mobile devices.”
Mobile applications are also ‘eyeball magnets’ that offer a fast-track to potential customers. More than 3 billion apps have been downloaded from Apple’s store alone. While not all mobile apps are ad-supported, some are, and some brands are creating their own apps. As well, the advent of HTML 5 will enable brands to offer Web-based apps and services aimed at wider mobile audiences.
Mobile ad networks such AdMob, Millennial Media and JumpTap are helping advertisers and marketers to reach large audiences that are, to some extent, demographically defined.
Strother says that some factors still constrain the market, however. Mobile is still fragmented by the lack of standardized device platforms, networks, and web browsers, and the need for different campaign formats for different kinds of messages. Other inhibitors include mobile ad-resistant users, limited mobile ad budgets, and a lack of experience with the medium.
Strother recommends that fledgling mobile marketers:
- Establish objectives;
- Know your customers’ mobile behavior;
- Devise a simple, sound mobile plan;
- Choose your tools wisely;
- Measure results regularly.
- Remember that: mobile advertising is always a bit of both art and science.
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