Tag: mobile marketing spending

Mobile marketing spending rises in first six months of 2013

During the first half of this year, digital ad spending has spiked when compared to last year.

The latest estimates regarding digital ad spending and mobile marketing for the first half of the year have now been released by Kantar Media, and they have shown that the figures have grown considerably over last year at the same time.

The total ad spend in the United States increased 2.0 percent across the market, year over year.

However, eMarketer also pointed out on Monday that “But Q2 2013 was notable for an even faster rate of increase, at 3.5% over Q2 2012”. This included the figures for not only mobile marketing, but all online advertising spending.

In the first half of 2013, the mobile marketing spending increased notably.

Mobile Marketing SpendingThe report also indicated that beyond mobile marketing, digital display ads experienced an increase of 5.3 percent over the first half of the year. However, it is important to note that this particular statistic does not include those displayed over smartphones and tablets, and does not include the results that were seen over video.

Video and mobile marketing are the two areas in which the largest increases in investment have been recorded. In fact, it is indicated that the growth for each of those individual digital spending areas rose by a great deal more than the figure recorded for the increases in display only.

It did not come as much of a surprise to the authors of the report that retail remained in the lead of the spending for mobile marketing and digital ad spending. However, the overall digital ad growth (not including video and smartphone and tablet ads) in the second quarter of this year was quite small compared to a year beforehand, landing at only 0.1 percent growth this year.

The report added that the fastest rate of increase was in the telecom industry, where there was a rise of 19.5 percent. Insurance and restaurants were also seen as rapid growth categories for mobile marketing as well as digital ad spending, as they each achieved overall increases in spending in the double digit percentages. It was estimated by eMarketer that the total overall ad spending in the United States will see a growth of 3.6 percent in 2013.

Mobile marketing is starting to make Google twitch

As a growing number of marketers target smartphone and tablet users, the search engine giant is feeling the pinch.

Shares at Google have experienced some notable drops over the last week, following the reports from the search engine giant that have indicated that profits and second quarter sales were not as high as they had projected; a fact that is being blamed, in part on mobile marketing.

Though Google is very dominant in the online sphere, smartphones and tablets are shaking things up.

The revenue for the second quarter of this year was reported to be $11.1 billion. Though this is still a solid figure, it is a clear miss of the average estimate that had been presented by analysts for $11.3 billion during that period of time. Mobile marketing is starting to be seen as considerably more powerful and influential than it had been.

Moreover mobile marketing also took its toll on the profits that Google experienced in this time.

Google - Mobile MarketingBefore certain items, profits had been at $9.56 per share, which is lower than the average forecast, which had been staked at $10.80. Last week, the shares continued their slide by up to 5.7 percent, at times.

Furthermore, beyond all of this unfortunate news for Google, the average cost per click also drooped by 6 percent, as mobile marketing became an increasingly popular effort, drawing budgets away from traditional desktop advertising.

According to a BGC partners LP analyst, Colin Gillis, in an interview with Bloomberg, “The challenge is for Google to reignite revenue growth as their existing businesses start to mature.” Gillis went on to say that “The core business is slowing down.”

This means that Google, just like the rest of the online world, is now realizing that the power of mobile marketing is considerably greater than predicted, and that an evolution will be required in order to be able to keep up with the changes that it demands.

There was one point during which the shares from Google had shrunk to $858.80 following late trading that had occurred after the day’s closing, which had been recorded at $910.68.