Top 3 Mobile Advertising Trends

November 30, 2010 § Leave a comment

Marketers are increasingly interested in mobile marketing as interactive messages can be delivered that are specific to a consumer’s location or particular context consumption.  Services are now available that provide consumers with mobile coupons that are sent directly to their cell phones and can be redeemed at the point of purchase.  Many companies are now making text messaging a part of their integrated campaigns.  Mobile ads can be delivered in the form of messages like SMS and MMS, banner and full-page ads on mobile internet sites, mobile search ads, in-application advertising and mobile video.

The following 3 trends are what marketers are currently discussing or even incorporating into their overall IMC plans.

1.  Continued Importance of SMS

Approximately 90% of the U.S. population owns a cell phone and 98% of those phones being SMS-enabled out of the box, SMS is one of the most popular communication methods in the world.  The increase in SMS can be  attributed to its low cost and ease of use.

In edition to the large volume of traffic SMS also has high CTR’s.  The average CTR for text messaging is 14.06%, while the average conversion rate is 8.22%. E-mail brings in an average CTR of 6.64% and an average conversion rate of about 1.73%, and Internet display doesn’t even hit the radar with an average CTR of 0.76% and average conversion rate of 4.43%, according to the Direct Marketing Association’s 2010 Response Rate Trend Report.

2. Mobile Sites vs. Mobile Apps

Many marketers are tasked with the responsibility to build either a mobile site or mobile app or both.

Google is betting on mobile web and search as the future, and Apple is taking the app route, it is still not clear which platform consumers will prefer in coming years. Because of this fragmented mobile browsing experience, developing either can seem like a huge commitment to marketers, especially since mobile spending currently makes up less than 5% of marketing budgets in many organizations.

To further complicate this decision marketers are faced with choosing from a number of different device types, operating systems, and available screen sizes.

Because of the intricacies with mobile, less than a third of U.S. marketers think optimizing the mobile marketing experience is important to their customers, according to an April 2010 survey by eROI.  Furthermore, just 23% of marketers responding to the survey reported having a mobile-optimized website.

3. The Growth of Mobile Video

Mobile video will be adopted in the coming years.  Currently video isn’t a huge focus for advertisers because of broadband and technology barriers.

The number of mobile video viewers in the U.S. will grow nearly 30% in 2010 to reach 23.9 million, according to eMarketer’s forecasts,  representing a reach of about 7.7% of the total U.S. population and just under 10% of mobile phone users. Those numbers are set to double by 2013 and increase still further in 2014.

By 2013, some even believe that video will be so widely adopted that it will be a significant driver of mobile data usage — occupying an estimated 66% of mobile traffic Cisco forecasts.

With video taking an increasingly important role in the mobile marketing, advertisers should keep their eyes open for opportunities to try out this new advertising opportunity.

AARP.org is an example of a company who is leveraging all mobile devices in order to capture the increase in mobile demand.

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