Mobile Marketing
Marketing to consumers through mobile devices has brought about a new age in
the marketing industry. With the ability to reach large numbers of consumers, this
growing avenue of marketing is the present and future of the marketing industry.
Mobile marketing has taken many forms such as text messaging promotions,
mobile searches, display ads on mobile web pages, and applications designed
for smartphones. Mobile marketing has gained increased support from many
marketers, especially with its cost efficient benefits to execute campaigns
through SMS messaging; however, many marketers are being cautious about
mobile marketing, only using this strategy in a limited scope.
Mobile Marketing Budgets
According to eMarketer, U.S. mobile advertising spending is expected to reach
$416 million in 2009. That’s a 30% increase compared to the $320 million spent
in 2008. By 2013, mobile advertising spending is expected to reach $1.6 billion
in the U.S. alone!
According to eMarketer, the following charts indicate how companies will allocate
mobile marketing budgets; a comparison of 2009 and 2013. The decrease in text
messaging campaign funds from 2009 to 2013 can be attributed to the growing
number of consumers that access the Internet from their mobile devices.
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2011
Little
&
King
Co.,
LLC
2009 Mobile Marketing Budget
60%
55%
50%
40%
30%
25%
20% 20%
10%
0%
Text Messaging Mobile Displays Mobile Searches
Campaigns
2013 Mobile Marketing Budget
40%
37%
35% 35%
30%
28%
25%
20%
15%
10%
5%
0%
Text Messaging Mobile Displays Mobile Searches
Campaigns
The following industries indicate the average amount of money companies are
spending on mobile marketing (Forrester Research, 2009):
• Travel and Hospitality $1.4 million
• Media and Entertainment $1.2 million
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2011
Little
&
King
Co.,
LLC
• Financial Services $0.75 million
• Consumer Goods $0.5 million
• High-tech and Manufacturing $0.3 million
• Retail and Wholesale $0.25 million
Digital Divas
A study was conducted by Microsoft Advertising Mindshare and Ogilvy Chicago
that sampled more than 800 online women in the U.S. (there are 230 million
mobile phone users in the U.S.) in order to study mobile device behaviors of
women. 16% of all online women represent what the study coined “Digital Divas.”
These women have a close connection with their mobile phones where they can
receive information, entertainment, and stay connected simultaneously. Digital
Divas are considered among marketers to be trendsetters that they need to focus
on at this moment as these types of behaviors will soon become mainstream
among a broader class of mobile users. The breakdown of what a Digital Diva
entails is as follows:
• 51% Mothers
• 22% Shop at least once a day
• 92% Share information with others about deals/special offers
• 58% Would get rid of their TV if had to eliminate one digital device from
their life
• 11% Would get rid of their laptop
• 171 Average number of contacts in their e-mail/mobile lists
4 Areas Overlooked by Marketers
With mobile phone users on the rise, many marketers are not taking full
advantage of mobile phone capabilities, specifically in four areas:
• Mobile supports the customer journey
o Offer apps in conjunction with online communications and websites
that can enhance the shopping experience.
o Example, consumer can send a text message to a number
established by the company that would offer discounts on their next
purchase.
• Mobile enhances in-store experiences
o Offer consumers a per aisle brand ambassador that is available
24/7 to aid and support the decisions of consumers.
o Example, consumers can send and receive text messages about
product reviews at the shelf.
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2011
Little
&
King
Co.,
LLC
• Mobile apps enhance POS purchases
o Marketers can offer consumers an opportunity at the point-of-sale
for a more rewarding product experience.
o Example, offering an app that will help consumers set reminders to
keep them on track and on time.
• Mobile Coupons
o This instant gratification offers consumers the ability to use mobile
coupons at the time of purchase either through SMS messages or
in-store redemption.
Mobile Marketing in time for Holidays
According to Pew Internet Project, 72% of American adults send and receive text
messages, so it is no wonder that more marketers are turning to text messaging
as a means of advertising. The holiday season is a great opportunity for
companies to get involved with SMS marketing in order to reach consumers with
relevant and valuable promotions being offered. Companies are taking
advantage of SMS marketing this holiday season by offering mobile coupons
and alerts about discounts offered, store hours, and special offers. These
companies will have an added benefit over companies that do not participate in
SMS marketing by being able to remarket and continue dialogue with registered
consumers after the holiday season.
Mobile coupons are a great way for companies to reach cost-conscious
consumers during the holidays, and can help in driving purchases because of the
discounts being offered. According to InsightExpress, mobile coupons have been
effective in increasing sales and traffic to stores (10% of consumers were driven
to a store after receiving a mobile coupon). When consumers were asked how
they would like to receive coupons on their mobile phones:
• 27% Send text message to receive coupons while in store
• 28% Find coupons on own using an application
• 45% Have coupons sent to me via text message
Source: PROMO Magazine; Mobile Marketer
Copyright
2011
Little
&
King
Co.,
LLC