Editor’s Note: Welcome to our weekly Reality Check feature. We’ve gathered a group of visionaries and veterans in the mobile content industry to give their insights into the marketplace. In the coming weeks look for columns from Laura Marriott of the Mobile Marketing Association, Mark Desautels of CTIA and more.
One of the biggest questions about mobile advertising today is a very basic one: Where are we on the market development curve? A recent JupiterResearch report predicted that mobile marketing in the U.S. alone will grow to $2.2 billion in 2012, up from $708 million in 2007. Other reports are much more optimistic than this; global forecasts sometimes exceed them by an order of magnitude.
While we have this data, the broader question of where the industry is today remains unanswered. In addition, many questions and ideas circulate about specific actions that we as an industry can take to ensure successful growth as we build this business, month by month and company by company, from the foundation up.
When talking with others in the industry, points of view often depend on individual experience. Based on what we see surfing the mobile Web and from reported results of some media companies, portals and brands, we are seeing significant use by leading marketers. However, how representative are these stories? With that question in mind, I again turned to INmobile, an online community of mobile executives, to get their thoughts.
Where are we?
We posed the question where is mobile advertising on its growth curve? The majority of responses indicate that it is still early, but that the growth has begun to be noticeable. Specifically, 54% of respondents say that mobile marketing is an innovative tactic with occasional business impact. Of the rest, 38% say we are in early experimentation only, while 6% feel that it is now a significant platform for leading marketers and 2% say that it is an established part of the marketing mix.
There was a broad recognition that some big brands are using mobile to their advantage. However, the rationale for those who feel that we are in the earlier stages believe that many companies have not yet added a line item for mobile in their marketing budgets; the common definition of mobile advertising is broad; and many people are still hungry for metrics.
It is clear that the answer to the question depends on experience. That said, here are a few things that we can all do to ensure the growth of the industry:
1. Agencies and brands must include mobile as a specific line item in their 2009 budgets.
2. Brands should experiment with various campaigns and creative implementations.
3. It is important not to expect mobile to be the online internet; allow for a less developed marketplace, with the associated opportunities as well as the challenges.
4. For those with smaller budgets, consider concentrating an ad buy in a limited time, in order to drive visible impact.
5. Measure – do studies or otherwise track results to see what is effective for each brand’s characteristics and objectives.
Time to contribute
Mobile Marketing is a global phenomenon. And it is one in which the U.S. is taking a leading role, while learning from the best practices in other geographies. We, meaning each of us reading this article, have an opportunity to contribute to the fundamental growth of this industry in a responsible and consumer-friendly way that benefits all stakeholders.
If we were to compare mobile advertising to a building, we would have a big “under construction” sign on the front of it. We have not yet built out the top floors, nor even the middle floors, but the initial blueprints are well circulated and the foundation is increasingly in place.
You may contact Louis directly at [email protected]. You may contact RCR Wireless News at [email protected].