In 2009, well under half a billion dollars were spent on mobile marketing and advertising and, over the five years to the end of 2015, that expenditure will grow at a compound annual rate of more than 40%, according to estimates from ABI Research.
This robust growth will be fostered by several factors, according to mobile marketing strategies practice director at ABI, Neil Strother. "Compared to campaigns in more traditional media, mobile marketing can be relatively inexpensive. Moreover, ads can be highly targeted and naturally paired with rich mobile content that growing numbers of consumers are accessing through smart mobile devices."
Mobile applications are also "eyeball magnets" that offer a fast-track to potential customers, says ABI. More than three billion apps have been downloaded from Apple's store alone. While not all mobile apps are ad-supported, some are, and some brands are creating their own apps. Also, the advent of HTML 5 will enable brands to offer Web-based apps and services aimed at wider mobile audiences.
Mobile ad networks such AdMob, Millennial Media and JumpTap are also helping advertisers and marketers to reach large audiences that are to some extent demographically defined.
"However," Strother cautions, "some factors still constrain this market. Mobile is still fragmented by the lack of standardized device platforms, networks, and web browsers, and the need for different campaign formats for different kinds of messages. Other inhibitors include 'reluctant' (mobile ad-resistant) users, limited mobile ad budgets, and a lack of experience with this emerging medium."
What steps does Strother recommend for fledgling mobile marketers? "Establish your objectives. Know your customers' mobile behavior. Devise a simple, sound mobile plan. Choose your tools wisely. Measure results regularly. And remember: mobile advertising is always a bit of both art and science."
ABI Research says its new "Mobile Marketing Strategies" study examines the dynamics of the emerging market and explores how marketers have leveraged text messaging, search, Web, in-application and video. It also compares the leading mobile ad networks, and lays out a practical strategy for marketers to use when they move into the mobile realm.