Is Mobile Marketing Ready for Prime Time in 2010? Absolutely!
Mobile marketing has taken far longer to evolve than people imagined, but I believe we are on the doorstep of an evolution in marketing that will rival social media in terms of impact. Yes, the most critical emerging media venue is mobile.
Mobile advertising is a rapidly growing sector providing brands, agencies and marketers the opportunity to connect with consumers beyond traditional and digital media directly on their mobile phones. A recent Forrester study shows that the world market for mobile marketing and advertising is projected to reach $50 billion by 2014, up from $29 billion currently, representing an annual growth rate of 12 percent. With the rapid maturation of this market, brand managers will have quite a bit to celebrate as this gold-mine marketing channel fully emerges.
I have been actively following Adenyo (f.k.a Silverback Media), which is a growing mobile marketing software platform business that recently raised a large $26.9 million financing round. They are one of the leading global companies looking to make their mark in this very hot mobile ad network space. Adenyo enables agencies, brands and mobile carriers to develop, target, deliver and analyze fully integrated mobile marketing strategies and campaigns. It’s just a matter of time before large brands get into the mobile economy over the next year, and become the catalysts for mass-consumer adoption.
US Market Size and Growth Trends
The US Mobile Marketing Industry Survey estimated that advertisers will spend about $1.7 billion on Mobile Marketing in 2009, growing to $2.16 billion in 2010.
Companies are primed for mobile advertising but undoubtably there is still a suprising amount that simply don’t understand how to mobilize their brand, or don’t even know where to start. A Unica Global Marketing Survey gathered information from companies in North America and Europe, including retailers, consumer product companies, and providers of travel and hospitality services. 57% of those surveyed said they either already use mobile marketing tactics—mobile messaging, mobile web sites mobile phone applications—or plan to in 2010. Respondents replied as follows: currently use, 33%, plan to use in 2010, 24%, plan to use after 2010, 13%, no plans, 20% and don’t know, 10%.
Local-Intent Still Key for Mobile Industry
As mobile data consumption rises, I expect local marketing to be the big winner. There is a strong correlation between local search and the mobile use case, which will cause a good portion of the ongoing mobile application boom to focus on local. The mobile industry seems to concur, as some analysts now project that location-based mobile spending will top $4 billion in 2015. That’s a mind-blowing increase from the relatively paltry $34 million spent just last year.
The mantra that rings true for successful real estate agents – “location, location, location” – seems poised to similarly ring true for mobile marketers in this new decade. And Google is admittedly hard at work optimizing advertising platforms for the increasing pertinence of “local-intent” in a substantial chunk of all mobile searches.
Google, however, won’t be alone in its efforts. Far from it. This week, Forbes chronicled Yahoo’s hastened foray into local advertising. According to the publication, Yahoo’s sales reps are “going after big companies with outlets that adverise in local newspapers and on regional radio stations and Web sites.
With the increased usage of high-end devices like the iPhone, Blackberry and Android – and companies like Adenyo making mobile advertising easier and more effective in this very hot mobile ad network space, it’s safe to say mobile marketing is definitely ready for prime time in 2010.
