Why Mobile Marketing is the Future

According to consumer research by The MMA and Lightspeed Research (October 2010), in UK, France and Germany, 45 percent of consumers (especially younger people) noticed mobile advertising and of these, 29 percent responded to it.

Of those that responded to the ads, in Germany 49 percent, UK 47 percent and in France 22 percent went on to make a purchase. (mobiThinking) marketing:

The most effective form of ads was opt-in SMS in the UK (40 percent said they were more likely to respond to these) and in France (21 percent); while in Germany it was mobile Web ads (27 percent). 

- Time sensitive special offers or discounts (especially m-coupons) were most likely to lead to purchase. 
Your Customers are Already Mobile - With or Without You

Mobile searches have quadrupled in the last year, according to Google, for many items one in seven searches are now mobile.

- 1 in 3 mobile searches are local. After looking up a local business on their smartphone, 61 percent of users called the business and 59 percent visited.

- 79 percent of smartphone users use their smartphones to help with shopping.

- 71 percent of smartphone users that see TV, press or online ad, do a mobile search for more information, but 79 percent of large online advertisers still do not have a mobile optimized site.

- More than half of U.S. mobile ad spending is local. BIA/Kelsey (June 2011): U.S. mobile ad spending will grow from US$790 million in 2010 to $4 billion in 2015. Local ad spend will grow from US$404 million to $2.8 billion.

This makes locally targeted mobile ads 51 percent of overall U.S. mobile ad spending, growing to 70 percent by 2015. 

Mobile local advertising includes ads that target users in specific locations or contain location-specific calls to action.

    “It is true across the board. Roughly one in seven searches, even in the smaller categories, are happening on a mobile phone, but how many of you are putting one seventh of your resources into mobile – anyone who hasn’t got mobile only business? Your customer is trying to engage you… it would be like not doing business with your customers on Thursdays.” Jason Spero, Google (Feb 2011).

    Mobile Marketing is 10X more Effective than Email!

    While Email has ruled for over a decade now, the general fact is that people do not open emails anymore at the high rates needed to generate a return on investment.

    SMS text messages are different:

    - 90% of all marketing emails are NOT opened by the recipient.
    - 86% of all Americans own a cell phone
    - 97% of all text messages are opened
    - 83% of all text messages are opened within an hour.

    General Mobile Marketing Stats to Blow Your Mind

    - Some 3.5 billion text messages are sent and received every day, according to CTIA, the wireless industry trade group. 

    - SMS is the king of mobile messaging 8 trillion text messages will be sent in 2011. But consumers are also embracing mobile email, IM and MMS rapidly. A2P 

    - Application to person SMS e.g. automated alerts from banks, offers from retailers, m -tickets is expected to overtake person to person SMS in 2016. 

    - There are 5.3 billion mobile subscribers (that's 77 percent of the world population). 

    - In the US over half of U.S. mobile ad spending is local. Asia – Japan particularly – continues to dominate global mobile ad spend. 

    - In 2011 over 85 percent of new handsets will be able to access the mobile Web. Today in US and Western Europe, 90 percent of mobile subscribers have an Internet-ready phone.

    - Portio Research (January 2011): 6.9 SMS trillion messages were sent in 2010. SMS traffic is expected to break 8 trillion in 2011.

    - Juniper Research (May 2011): By 2016, application-to-person (A2P) messaging will overtake person-to-person (texting) messaging, being worth more than US$70bn. 

    - Among the drivers of mobile ad revenue growth are smartphone penetration, mobile Web usage and related increases in ad inventory. BIA/Kelsey expects large brand advertisers to evolve their campaign objectives to the capabilities of the mobile device — most notably, location awareness. 

    emarketer.com (October 2010): US expenditure on mobile advertising and marketing is estimated to be US$416 million in 2009; $743 million in 2010 and will be $1,102 in 2011. In 2010 mobile ad formats were dominated by messaging ($327 million), but display ($202 million) and search ($185 million) will catch up in 2012. Video lags at ($28 million). 

    - Gartner predicts mobile ad revenue will be US$3.3 billion in 2011. This will sky rocket to $20.6 billion in 2015, more than doubling each year. It will continue to grow thereafter.
    • Search ads and location ads (paid-for positioning on maps and augmented reality apps) will deliver the highest revenue, while video/audio ads will see the fastest growth through 2015.
    • Brand spending on mobile advertising will grow from 0.5 percent of the total advertising budget in 2010 to over 4 percent in 2015.


  • Portio Research
  • Juniper Research 
  • Gartner
  • mobiThinking

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