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.
Mobile marketing report released by Millennial Media
Millennial Media, a mobile advertising firm, has released its latest 2012 SMART report, which highlights the trends that have emerged in the mobile marketing sector over the past year. Mobile devices are becoming more common, which has increased activity in the mobile marketing sector exponentially. More advertisers are looking to engage consumers through their mobile devices, and mobile marketing campaigns have been very successful in doing this in the past. Many advertisers are looking to maintain a strong presence in mobile marketing, but have been faced with significant challenges over the past year.
Advertisers using mobile marketing to maintain in-market presence
According to the report, 39% of advertisers around the world used mobile platforms in order to maintain their in-market presence. Mobile marketing is not only considered an effective way to engage consumers and encourage them to purchase new products; it is also an effective means of ensuring that consumers do not forget that particular products are available. Using mobile marketing to maintain in-market presence has proven somewhat successful for many advertisers, helping them sustain a constant connection with a wide range of consumers.
Brick-and-mortar store traffic on the decline
The report also shows that mobile marketing is being used to build brand awareness and drive traffic to websites. Relatively few marketers are using mobile marketing campaigns to promote in-store traffic. Those that are pushing in-store traffic are primarily operating within the restaurant and retail industries. While advertisers have found some success in driving consumer traffic to actual stores, many consumers prefer to shop using their smartphones and tablets, which has had a marked impact on the retail sector as a growing number of people opt to use their mobile devices to purchase products rather than visit an actual store.
Mobile commerce helping offset the decline of physical traffic for retailers
While physical traffic for retailers may be on the decline, the prevalence of mobile commerce has offset whatever losses retailers would see from this trend. Consumers are eager to purchase products through e-commerce sites, which has helped the retailer industry see impressive gains over the past year. Mobile commerce is expected to help retailers see promising growth in several sectors, as long as these retailers provide consumers with easy-to-use mobile commerce services.
