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Mobile marketing spending increased by 111 percent last year

Lucy | April 20, 2013

The most recent report from the IAB has shown that the average amount spent has surged.

The Interactive Advertising Bureau (IAB) has just released their latest report, which has indicated that mobile marketing spending has been sharply rising, as it recorded an increase of 111 percent throughout 2012.

The statistics recorded by the IAB and which were presented in the report showed $3.4 billion in spending.

The report showed that the spending exploded to well over $3 billion last year, which made 2012 the second year in a row that there was a very dramatic rise in the amount that was spent in mobile marketing.

The rate of spending is rising as more mobile marketing companies see the rising importance of the channel.

Smartphones and tablets are becoming far more common and they are starting to be a highly important part of the daily lives of many consumers. According to a PricewaterhouseCoopers partner, David Silverman, as the mobile marketing environment matures, so does the level of its understanding and the amount that is being spent. As its credibility is being proven, so its use continues to increase.

Silverman stated that “They have certainly made the buying experience easier—similar in what we’ve seen with online [exchanges].” However, he also went on to say that “there are a whole host of other factors that have created the growth of mobile.”

He explained that what the mobile marketing ecosystem is currently seeing is a sudden influx of consumers looking directly at their smartphones during much of their time. Therefore, “Marketers are trying to reach them where they are at—on elevators, at coffee shops, etc. The inventory is there, and the people are there. You combine those elements with localization, and mobile presents a great opportunity.”

Last year, the total revenue from digital ads reached the $36.6 billion point. This also showed a considerable increase, year-over-year. Though much more moderate than that of mobile marketing use, it was still 15 percent greater than it had been the year before. Silverman predicted that the channel will start to see a massive rise in social media, and this will have a considerable impact on ad inventory that can be sold, particularly when it comes to the display category.

Social media marketing spending over mobile set to take off

Julie Campbell | April 10, 2013

The size of budgets designated to reach smartphone and tablet users is expected to climb.

According to a recent survey, the percentage of overall advertising budgets that is expected to be designated for social media marketing, specifically with smartphone using consumers in mind, is expected to explode.

This was reported in the latest CMO Survey, which looked into the types of spending within the budgets.

The survey involved the participation of chief marketing officers of various firms, who reported that they are currently spending an average of 8.4 percent of their overall budgets toward social media marketing. However, within the next year, that number is expected to climb to 11.5 percent of the budgets.

In 5 years, social media marketing will make up 21.6 percent of the budgets, said the survey.

This shift in the way that the funds are being spent and in the importance of social media marketing is expected to become a primary topic in advertising and technology circles. According to the CMO Survey director, Christine Moorman, “Companies are searching for novel ways to interact with their customers that will drive the growth of their companies. Unfortunately, marketers are behind the curve with their current levels of social media expenditure, given the amount of time customers spend engaged with one another and with companies online.”

The research, said Moorman, involved the participation of 468 American marketing execs who identified social media marketing as one of the most important areas for increased spending. These results, she said, show that the importance of this channel is now being heavily recognized. She also pointed out that some of the largest spending increases in this area are expected to take place in some of the business-to-consumer sector giants, such as Coca-Cola and Proctor & Gamble.

The survey showed that among companies of this nature, social media marketing spending will rise from an average 9.6 percent of the budget at the moment, to 24.6 percent of the budget in five years from now.

In Moorman’s news release, she stated that companies are still trying to figure out how to be able to measure the efficacy of their social media marketing campaigns.