Tag: mobile marketing spending

Mobile marketing spending could be over $18 billion this year

Advertising over the smartphone channel is increasing in its importance and budgets are reflecting that.

According to a recent study by Gartner, the IT research agency, mobile marketing is rapidly growing its share of overall advertising dollars as a rising number of businesses recognize the importance of the opportunity that it presents.

A recent report from Gartner showed that the smartphone advertising spending worldwide is rising fast.

In fact, that increase is moving quickly enough that it is likely that the total spend for mobile marketing will reach $18 billion, this year. To understand the significance of this total, it represents an increase of about 77.7 percent over last year’s figure of 13.1 billion. Also notable is that the Gartner report is predicting that North America and Europe will take hold of the lead in ad spending over this channel.

Previously, the Asia Pacific region had held the title as the leader in mobile marketing use and spending.

Mobile Marketing SpendingThe report credits the Asia Pacific’s ability to hold onto the top position for so long to its rapid and massive adoption of smartphones. That allowed it to take an early lead and maintain it until this year. That said, it will likely slip into second place behind the West before this year comes to a close.

This promising data helped to bring an upbeat feeling to the sixth edition of the Mobile Marketing Association (MMA) forum, which occurred last week. It was attended by approximately 250 delegates as the importance of this channel was discussed in terms of the impact on consumers and businesses, alike.

The Asia Pacific managing director of the MMA, Rohit Dadwal explained that “Five years ago, our time was spent convincing marketers of mobile’s efficacy as an advertising and consumer engagement medium. With the exponential growth of mobile, it is no longer a nice-to-have element in a marketing campaign but rather a must-have and is a key factor driving innovation in marketing.” The organization has been saying this for several months and the recent Gartner data is clearly backing it up with figures collected from the real world.

Mobile marketing to play an increasing role in strategies next year, says IBM

Top execs are starting to increase the role of smartphones and tablets in their campaigns.

According to a survey that was conducted by IBM, which involved the participation of 600 senior managers, the majority of companies plan to boost their investments into mobile marketing over the next year to 18 months.

This research showed that chief marketing officers are becoming increasingly involved in the development of these strategies.

Leaders in mobile marketing strategy – which were defined as companies that have been able to create solid smartphone and tablet based strategies – have stated that mobility has “fundamentally changed how they do business.” Furthermore, the report from IBM went on to reveal that the majority of these leaders have been experiencing “measurable returns on mobile investments”.

Mobile marketing has changed the way in which execs are participating in company strategies.

Mobile Marketing - BusinessesFor instance, according to the research director for the IBM Institute for Business Value, Eric Lesser, in many enterprises, CIOs are still taking on an important role in the creation of mobile marketing strategies. However, among the leaders in the industry, there are additional people who are also involved in this process, which includes the chief marketing officer.

Lesser explained that “We heard about the importance of getting that voice of the customer into the hands of the engineer because of the importance of the customer experience in the mobile world.” He also pointed out that they have also been discovering “parallels between the mobile environment today and the early days of e-commerce in the late 1990s”. It was explained that in this mobile marketing, there was a considerable amount of activity and that a great deal of it was oriented toward the consumer, but that there was also a notable amount of internal fragmentation in companies.

He stated that various groups are now coming up with different applications, but that there isn’t a large amount of cross-organization coordination in terms of coming up with a coherent and solid mobile marketing strategy which not only takes what people are doing with consumers into account, but also how the channel itself “can be leveraged more effectively internally.”