Mobile marketing spend to increase 59pc in 2011: study
February 2, 2011
Greg Stuart is president/CEO of the Mobile Marketing Association
The majority of marketers will engage their target audiences using various mobile channels and platforms in 2011, according to a study by the Association of National Advertisers and the Mobile Marketing Association.
The study found that a whopping 88 percent of brand marketers will use mobile marketing techniques in 2011. Seventy-five percent plan to increase their spend on mobile marketing initiatives by an average of 59 percent. In 2010, 62 percent of marketers used some form of mobile marketing for their brands.
The growth can be attributed to a number of variables, said Greg Stuart, president/CEO of the MMA, New York. First the continued advancements of devices is allowing for more innovative campaigns.
Second, marketers are starting to realize the effectiveness of using mobile marketing to reach and engage with their consumers and consumers are responding, he said.
Intent is high
According to the study, 26 percent of brand marketers reported their intention to begin using the mobile medium this year, elevating the expected 2011 utilization rate to the near-universal 88 percent level.
Most interestingly, respondents to the survey listed Coca-Cola and Target as two companies that are particularly successful with mobile marketing.
Respondents claim Coca-Cola is successful in its mobile advertising strategy and that Target is doing an exceptional job with its integration of mobile Web, rewards and wish-list registry.
However, most respondents are less enthusiastic about their own mobile initiatives, according to the study. In fact, just 25 percent rate their efforts as extremely or very successful, while 53 percent say their efforts have been only somewhat successful.
Use of mobile
Those marketers claiming above average success rates have been using the medium longer, tend to use more of mobiles individual platforms, integrate platforms with each other and measure mobile efforts with a wide array of metrics.
More than a dozen distinct interactive mobile platforms are currently being used by marketers, according to survey findings.
The five with the highest adoption levels at least by one-half of the firms surveyed are mobile Web sites, apps, SMS, and mobile display and search advertising.
Respondents understand there are various benefits to the mobile medium such as its portability, ability to reach consumers on the go and immediacy.
But, there are several barriers to the adoption of mobile marketing. Lack of metrics, inability to prove ROI and lack of understanding were some barriers that brand marketers listed.
To date, 71 percent of companies have assigned responsibility for mobile marketing to an existing internal group. Only 19 percent of respondents say their companies have created a new internal group to manage the mobile marketing function. In most cases this group reports to the digital marketing team.
This year, we expect to see more targeted campaigns designed with mobile in mind first and other media channels second, Mr. Stuart said. We also believe that well see new campaign innovations as marketers worldwide continue to increase their focus across all mobile platforms.
With the increased innovation in mobile devices, the opportunities for marketers to innovate, has increased, he said. In addition we are seeing that mobile is no longer an afterthought for marketers, but rather, in many cases the first point of consideration when developing marketing plans.
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