Tuesday, April 3, 2012

Mobile Marketing Budgets Growing in 2012

In late 2011, many experts predicted that large advertisers were planning to spend more money on mobile marketing in 2012. In some cases, these corporations are looking at doubling the amount they are spending on marketing. The reason for the change has a lot to do with consumer interests and behavior, and we are seeing this spend come to fruition.

Now that advertisers have discovered that consumers are very likely to open ads on smartphones and tablets, they will be adopting mobile in their overall marketing efforts. Click through rates on smartphones are approximately 72 percent, and tablet users open ads at a rate of about 31 percent.

The other side of the equation for companies that want to advertise on mobile devices is that it is a less expensive option. Pay per click rates for mobile ads are lower than for desktop options. The combination of lower costs and higher click-through rates make mobile ads an attractive option for companies. 

Another effective way to reach consumers is through mobile coupons via SMS messaging. Mobile coupons are redeemed at 10 times the rate of traditional coupons, and coupons sent via SMS can be tailored to a customer's specific preference of item or offer. 

In contrast to budgetary predictions for mobile ads, only 22 percent of companies are predicted to increase spending on traditional advertising efforts. I also noted that 38 percent of companies are expected to reduce the amount they are spending on traditional media. Obviously, the money is in mobile marketing in 2012.

If current trends continue, it makes sense to me that corporations will continue to direct their marketing funds in the same way in years to come. The market for smartphones is growing and consumers are obviously receptive to receiving marketing messages, which adds up to more spending on mobile marketing.

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