August 31, 2012
This is something we see a lot and it is part of the reason there is such a big opportunity in mobile. With many companies devoting less than 1% of their total marketing budget to mobile the door is wide open to reach consumers in this category that has arrived.
NEW YORK: via WARC US marketers should increase their spend on mobile marketing by a factor of seven, according to a study commissioned by the Mobile Marketing Association (MMA).
The research by Marketing Evolution, a marketing measurement and analytics firm, concluded that the optimized level of spend on mobile advertising for US marketers in 2012 should be 7%, on average, compared to the current budget allocation of less than 1%.
“Finally, we are able to give marketers a level of empirical data that takes out the guesswork,” said Greg Stuart, CEO, MMA Global.
He added that the research “offers a baseline for further discussions on what a rebalanced marketing mix should look like to achieve a stronger ROI on every dollar they spend.”
The precise level of spend will of course depend on the marketing goal and industry category. The study also indicated that mobile’s share of the media mix will only increase in the future, to at least 10% by 2016 as more people use smartphones.
Rex Briggs, CEO of Marketing Evolution, said: “It’s clear that marketers, on average, are spending significantly less than they should on mobile and are losing out on sales and profits by settling for a sub-optimal media mix.”
The information was welcomed by B. Bonin Bough, vice president of Global Media and Consumer Engagement at Kraft Foods.
“We’re committed to making a difference in mobile innovation,” he said, “so I’m very pleased that the MMA is leading the industry with this valuable data.”
The MMA estimates that mobile marketing in the US is currently worth $26bn.
Data sourcd from MMA; additional content by Warc staff, 31 August 2012
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February 17, 2010
Via GSMA Mobile World Congress – Barcelona
Google CEO Eric Schmidt put mobile at the heart of the Internet giant’s future in a special keynote at Congress late this afternoon.
Schmidt outlined how Google’s top programmers were now concentrating on mobile as their primary focus; he also pointed to recent acquisitions in the mobile space, notably AdMob.
Unveiling a new Google mantra – ‘Mobile First’ – Schmidt proclaimed that three unique areas had now converged on the mobile device: computing power, interconnectivity and the cloud: “The phone is where these three all interconnect and you need to get these three waves right if you want to win.” He highlighted Internet phenomenons such as Spotify, Facebook – and Google itself – as leading the cloud concept across both fixed and mobile. “If you don’t use the power of the cloud you will fail,” he said.
He added that in places such as Indonesia and South Africa Google was now seeing more searches on mobile than via the desktop.
Google programmers joining Schmidt on stage demonstrated the firm’s latest developments, including efforts to merge its speech and image recognition technology; the firm impressed with a preview of an optical character recognition (OCR) tool that was able to recognise and translate a picture of a German menu into English. Google announced that German has now been added to its speech system as its fourth language.
Schmidt also provided an update on Google’s Android platform, which he said was now running across 26 different devices. He said that Android handset vendors were selling more than 60,000 per day, a figure that has doubled over the last quarter. During an Android demonstration, Google’s Eric Tseng announced that the platform now supports Flash – the full Flash version (10.1) rather than Flash Lite – allowing gaming and movies over handsets. The announcement will give Android devices an advantage over Apple’s iPhone, which does not support the technology.
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February 11, 2009
NEW YORK Advertising on mobile phones is becoming an increasingly mainstream phenomenon, to judge by a Limbo-GfK Technology Mobile Advertising Report released today. (Limbo is a mobile social network whose free services to members are supported by the revenue from mobile ads.)
Thirty-three percent of Americans with mobile phones said they recalled seeing mobile advertising during the fourth quarter of 2008. Among those with iPhones, the figure was even higher, at 41 percent. “The vast majority of these ads were seen in SMS text messages,” the report notes.
What do people do when they receive mobile advertising? One-third of those who recalled getting such ads said they “responded in some way,” with the most common form of response being to call a toll-free number included in the message: “16 percent of ad-aware consumers recall doing this.” Women were almost twice as likely as men to say they responded in some way to a mobile ad they’d received. In a breakdown by age, 18-24-year-olds were the most likely to report having done so. Perhaps most encouraging for advertisers, says the report, “is the fact that one in seven people also reported that they had bought a product or visited a store as a result of seeing a mobile advertisement.”
Among other tidbits from the report: “More than 162 million consumers used text messaging in the fourth quarter of 2008,” up 16 percent from fourth-quarter 2007. Ten percent of Americans with mobile phones used location-based services in last year’s fourth quarter, with the figure rising to 22 percent among 25-34-year-olds.
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November 17, 2008
Despite the fact that the global economy is slowing down, mobile messaging growth will continue. According to data from ABI Research’s recent report, mobile messaging services revenues will grow from $151 billion in 2008 to greater than $212 billion globally by 2013.
Mobile messaging ARPUs are 85%+ of all handset data services revenues regardless of region and will remain so for many years. This fact will push all mobile messaging suppliers to work cooperatively to serve customers well and propel all parties (operators, device OEMs, content providers and middleware vendors) through these rough economic waters, according to ABI’s principal analyst Dan Shey.
Also important is the trend that involves more and more customers who see mobile messaging services as a more efficient way to communicate than voice services.
For the full report ABI Research: Mobile messaging services set for growth despite tough economic times
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