Tag: mobile marketing association

Mobile marketing budgets to increase by 25 percent

A recent India based study has shown that interest in advertising over this channel is growing fast.

Even though marketers in India typically reserve 10 percent or less of their total advertising budget for mobile marketing, a new report has indicated that this trend is currently changing and that by the end of the year, that figure will have risen by 25 percent.

Marketing firms in India tend to spend less of their overall ad budgets on mobile than Asian Pacific counterparts.

Almost 75 percent of marketers in India currently reserve 10 percent or less of their overall ad budgets for mobile marketing. In Asia Pacific countries, only 66 percent have such a low percentage reserved for this channel. This, according to a report that has been issued by Warc and the Mobile Marketing Association. That said, the report did take care to underscore the fact that much of the industry is expecting to increase their amount of spending on smartphone ads by 25 percent.

The portion of the mobile marketing budget will also continue to rise by another 51 to 99 percent by 2020.

Mobile Marketing BudgetThere will also be overall advertising budget growth heading to India, this year. Therefore, even though there will still be companies that will be spending only 10 percent of their total budget on mobile ads, the amount of money actually being spent will be increasing. In fact, the total budgets in India are predicted to rise by an average of 46 percent, which is slightly higher than Asia Pacific company counterparts, where the prediction is a 43 percent increase.

To explain the growth in the amount of spending that will be dedicated to mobile advertising, the report indicated that the cost associated with smartphone ads has increased by 49 percent. Therefore, to maintain the same strategy, it is costing companies more. “While marketers appreciate the importance of the mobile channel in India, full potential of mobile advertising is still to be realized,” said the report.

Approximately 47 percent of the respondents to this survey stated that they felt that mobile marketing is an effective channel and that it provides brands with benefit.

Mobile marketing growth 90 percent driven by SMS

Recent research has revealed that it is very clear that text advertising is dominant within this category.

As the global use of smartphone and tablet based ads continues to rise, the Mobile Marketing Association (MMA) has found that it is SMS that has made its way to become dominant within this category.

The use of this type of ad has been credited to the widespread use of smartphones and tablets on a global scale.

For example, approximately 90 percent of adults in the United States own a cell phone of some kind. Among them, an estimated 60 percent, at least, have smartphones. The MMA has projected that it won’t be long before that penetration of smartphones in the U.S. will grow even further and will break the 80 percent mark. As a result of this trend, mobile marketing is being taken very seriously and is experiencing growth at a dramatic rate. This, according to the MMA’s Transparency Market Research (TMR).

This has shown that advertisers are seeing mobile marketing as a much more important way of reaching consumers.

Mobile Marketing - SMSThe TMR stated that “With consumers carrying mobile devices wherever they go, it has become crucial for marketers to target this large consumer base with mobile advertisements and promotions.” It also went on to explain that a firm providing mobile advertising is able to give marketers services that allow them to reach consumers by way of their mobile devices such as smartphones and tablets.

It also expressed that “Each distinct mobile advertising platform contains opportunities for marketers to deliver their message to a broad range of consumers.” Moreover, at the moment, it is SMS that is “cleaning up”.

The report stated that ads for mobile ads can be utilized for sending text messages to consumer cell phones. It explained that such services can also be used for purposes such as for banner ads that will display on mobile apps.

These mobile marketing ads appear at the top or bottom of the page. But SMS is making up more than 90 percent of the total revenue in the market. The reason is that this method comes with some sizeable advantages, including that it allows unobtrusive brief messages to be sent without any issues with privacy.