“The mobile advertising market is poised for exponential growth over the next several years. There are several obvious reasons for this growth; the most often cited is the rate of mobile phone adoption itself, with global penetration of mobile phones on track to surpass three billion in the next few years, according to industry estimates. As is often the case with advertising, it is the lure of massive numbers of eyeballs fixed on a ‘third screen’ that is drawing brand marketers to this medium.”
According to the Forrester Research Interactive Advertising Forecast (2009), the US mobile marketing will experience a 27% compound annual growth rate (CAGR), totaling almost $1,274 million in spending over the next five years. Mobile marketing will increase by nearly 70% to $391 million this year.
Analyst firm Juniper Research predicts that globally, mobile advertising will grow into a $5.7 billion market by 2014, and will increasingly be seen as a very important medium for marketers. In the report – “Mobile Advertising: Delivery Channels, Business Models, & Forecasts” – author Dr. Windsor Holden notes that the response rate for mobile advertising is significantly higher compared to other methods of advertizing. This is one of the factors that are contributing to the growth of mobile advertising, and helping in creating a strong market.
You can already see it happening. Some of the biggest US brands including the Chicago Tribune, Chase Bank and Visa, Kroger Grocery Stores, JC Penney and Hannah Montana have jumped on the mobile marketing bandwagon. AdMob, the world’s largest mobile advertising marketplace, serves 6 billion mobile ads every month, and has already recorded about 84 billion global impressions till date.
Here’s why mobile marketing is poised to witness explosive growth:
According to IT Facts, 2.3 trillion text messages will be sent and delivered globally by the year 2010. This is hardly surprising considering the fact that more than 200 million US citizens (i.e. half the country’s population) carry cell phones. Globally, there are more than 3.1 billion people using mobile phones, with penetration levels exceeding 80% in most developed countries. That’s a HUGE market… largely untapped!
Not convinced yet by the market size? Here are a few statistics which clearly indicate why the future of mobile marketing is so bright:
According to Airwide Solutions’ survey of 50 major companies
- 89% of major brands plan to market via mobile phones
- 40% of major brands have deployed text messaging (SMS) campaigns
- 18% of major brands have deployed multimedia messaging (MMS) campaigns
M:Metrics, a leader in mobile media measurement, states in their report on “Cracking the Mobile Marketing Code” that the global mobile advertising market will be valued at over $16 billion by 2011.
And it’s not just industry executives either who’re twiddling their thumbs on their mobile devices. A survey by Babycenter.com of 2,400 mothers revealed that the single most important tech gadget in their lives is the cell phone (23%), closely followed by the Internet (21%).
If you’re astonished by the way even “non-techie” grandmoms are gravitating towards smartphones, don’t be. The answer is simple – Usability. In just the way Rich Internet Applications (RIAs) revolutionized user-experience on the Web browsers, Rich Mobile Applications (RMAs) are doing the same for the smartphones.
Using applications on the mobile phones has become easier than ever before. In addition to the advantage of constant mobility, RMAs have enabled interactive delivery of services, while also offering users a rich overall experience. This fantastic experience is the driving force behind the rapid adoption rate of smart Internet enabled mobile devices, creating a huge market that was hitherto non-existent.
The arrival of mobile broadband is accelerating use of Internet on the phone, with a consequent growth in digital marketing as well. As the mobile devices become increasingly popular and users become more accustomed to using it as a primary communications device, marketers will have to capture the user’s mindspace through innovative means, in a new marketplace that comes with its new, unique set of rules.
Evan Neufeld, a renowned authority in new media, advertising and interactive advertising, has the last word on the case for mobile marketing, “No organization or brand can afford to be left behind in the rapidly evolving mobile marketplace, so the most important thing for brands to take away from this report is to start today and begin to realize the potential of this powerful new medium.”