Tag: mobile marketing news

Mobile marketing budget slashed at Samsung

| January 28, 2014

The largest smartphone manufacturer in the world won’t be spending as much marketing over that channel.

It has recently been revealed that Samsung Electronics, the biggest smartphone maker on the globe, has decided that it won’t be spending as much money on mobile marketing throughout 2014.Mobile Marketing - Budget Cutting

This decision has come as a surprise to some as mobile devices are a primary focus of the company.

The reason that was given for cutting back on the mobile marketing budget at Samsung, this year, is that the company plans to reduce that spending in a way that directly reflects its revenues. This, following a massive amount of spending during the fourth quarter during its tremendous promotional campaigns throughout the hot holiday shopping season.

That said, this doesn’t meant that Samsung will be ceasing its mobile marketing, only cutting is budget.

There are other advertising and promotional opportunities that are specifically being leveraged at the moment and that are cutting into the overall budget of the company. For that reason, some changes needed to be made this year to carry them through based on the revenues that are expected throughout that time.

For instance, according to Kim Hyunjoon, the senior vice president at Samsung, the company plans to “actively leverage global sports events such as the Sochi (Winter) Olympics” as well as their channels through retail. However, at the same time, they are working to “try to raise the efficiency of our marketing spend and lower our overall mobile marketing budget to revenue this year compared with last year.”

Kim Hyunjoon made this announcement to analysts as Samsung was releasing its earnings figures. Last year, the company had run a number of exceptionally large campaigns, particularly in the last part of the year. This came as a part of a number of different strategies and often coincided with the launches of a series of new types of mobile devices and gadgets that the company has to offer.

The company does intend to continue with a mobile marketing strategy this year and will maintain its reflection of the earnings it plans to bring in through 2014.

Location based marketing will reach $10.8 billion in 3 years

| January 27, 2014

Geolocation technology is rapidly increasing in its importance when it comes to sending ads to consumers.

Though location based marketing has been an area where marketers have been pecking away over the last couple of years, trend reports are starting to indicate that this use of geolocation technology is ready for the mainstream and that consumers are going to start seeing it a great deal more.Location based marketing will reach a billion

According to a recent report, the total spending on this ad tech will breach the $10.8 billion mark by 2017.

In three years from now, spending on location based marketing is expected to represent 52 percent of all of the money spent on mobile advertising. This, according to the data from a report predicting the future of the geolocation technology, issued by BIA/Kelsey. That same report suggested that in 2012, marketers were already spending $1.4 billion on these targeted campaigns.

Clearly, in this small span of time, location based marketing spending will head skyward.

Even more interesting is, perhaps, the discovery in that same report that attribution tracking post engagement has already arrived as a “a competitive imperative for mobile advertisers, publishers, networks and ad tech providers.” This, according to the BIA/Kelsey vice president of content, Mike Boland, when discussing the firm’s forecasts.

Boland went on to explain that the penetration of smartphones, in combination with the broad spectrum of different behavioral and location signals make it possible for improved attribution to occur. This, at the same time that it is being compelled by a greater demand from advertisers to tighten their ROI. He stated that “Tying conversions back to specific ad campaigns is the holy grail of advertising, which will make campaign attribution the mobile battleground of 2014.”

The predictions from BIA/Kelsey are considered to be highly optimistic, particularly when taking into consideration the current emerging nature of this form of advertising and, potentially, its methods of attribution.

As location based marketing over mobile channels is still quite new, it is not difficult to explain why only about 3 percent of current ad dollars are headed in that direction. However, if this report is accurate, then this trend will be changing very soon, and quite rapidly.