The cover story in the January 30 issue of Marketing News presents a solid argument that 2011 will be the year that mobile marketing finally becomes mainstream in the United States. For years, marketing prognosticators have been saying that mobile marketing would reach a critical mass, so when I saw the headline This Time It’s Different, I was curious as to why their editors felt that 2011 would be different. Here's what I found:
82% of U.S. consumers now own a cell phone, according to Forester Research. Tablets such as the iPad will reach 54.8 million units in 2011, according to Gartner Inc. and annual global tablet devices will reach 81 million by 2015 according to Juniper Research.
These are boxcar numbers that support their conclusion that 2011 will be different, but the real story is more than just about numbers. Mobile phones and devices have increasingly become an integral part of our everyday lives, and for many of us mobile is the “first screen” in our lives. When mobile first came on the scene, it was the third screen - behind TV and the Internet. Now with the advances in technology, and the widespread use of text messages and apps, mobile has become the first screen. It’s something your clients and their customers, no matter who they are, trust and use throughout the day.
The explosion of 3G and 4G devices, growth in data plans, and the resulting acceptance of smartphones are three key drivers for mobile growth.
According to recent comScore data, among mobile subscribers 13 and older, nearly half (48.9%) have 3G or 4G devices, up 23% from 2009. Their data also show that 33.4% of subscribers have some sort of data plan, and among those consumers, 83.9% have unlimited data plans. They now estimate that more than a quarter of U.S. consumers have smartphones, a 68% increase from 2009.
Apple’s iPhone and Google’s Android are leading the charge on improving customers experiences on mobile phones, which will boost industry growth.
And we can't forget about RIM/Blackberry, Windows OS, and Nokia's Symbian OS. When you hear the phrase “there’s an app for that”, it’s true. There are now almost 300,000 third-party applications officially available on the Apple App Store, and last week Apple announced they had reached over 9.9 billion downloads. It’s becoming second nature to shop, do research on products and services, and communicate with your friends throughout the day because the new phones are so easy to use.
Spending on mobile advertising is expected to grow more than six fold over the next four years.
Spending is expected to reach nearly $2.55 billion, according to eMarketer, a New York-based digital marketing research firm. Along with consumer’s increasing mobile usage, growing ad spending on mobile will help to fuel its growth. Julie Ask, a vice president and principal analyst in mobile and telecom at Forrester Research, feels that “the larger screens have resulted in an increase in media consumption, and that generally leads to more advertising.” A recent survey by the Mobile Marketing Association of 200 executives found that 24% of respondents said they would more than double or even triple their investment in mobile advertising in 2011 compared with 2010.
Other factors cited include the growth in “tools you can use” to aid your marketing efforts.
Mobile payment technology, mobile gift lists and mobile gift cards will open more opportunities for savvy marketers to take advantage of mobile as an important part of their marketing plans. Many marketers are now experimenting with text messaging to alert shoppers to deals, and mobile apps have moved beyond games and GPS to include everything from recipes to tips for parents to teach their kids smart eating habits. Another growing trend is location-based marketing, and companies like Foursquare allow users to find special deals while in-store where they can make an immediate purchase.
Analytics will provide the final piece of the puzzle to marketers.
Michael Becker, managing director for the Mobile Marketing Association calls analytics “the connective tissue of mobile to traditional media”. The ability to track direct sales or indirectly influenced sales through mobile is expected to grow significantly and allow marketers to monitor sales activity in real time. With increased recognition of the valuable potential of having an interactive mobile device in the hands of consumers at a time when they are requesting support from your clients will entice more marketers to find ways to leverage that capability.
MMA’s Becker concluded the article with the statement that “mobile is where the customers are. It’s as simple as that. Old world marketing was about attitudes, awareness and usage. New world marketing is putting the focus on making sure that you, as a marketer, are there at a time of a consumer’s expressed need.”
With mobile marketing, a company can respond to their customers when they need them. No matter where they are at the time.
What about your agency and clients? If 2011 is, indeed, when mobile finally grows up, are you ready to take advantage of the opportunity?
