Weekly Mobile Nuggets - October, 12, 2012
1. Mobile advertising spending in the U.S. nearly doubled to $1.2 billion in first half of 2012, growing from
4% to 7% of all Internet ad spending, compared to the same period a year earlier (source: Pricewaterhouse Coopers, 2012)
2. Over the last two years, the U.S. mobile video audience increased 77% to 36 million viewers (source: Business Insider)
3. In less than two years, YouTube has seen it’s rate of videos consumed on mobile devices climb some 400%.
(source: Mobile Marketing Watch, 2012)
THE YEAR OF 7%??
The last three years have been the “Year of Mobile”. Everyone entrenched in mobile is waiting with baited breathe for mobile to hit that tipping point. Smartphones are consistently on the rise and consumers are spending 10% of their time now on mobile devices, consuming content, engaging with applications, emailing, texting, and even the occasional phone call!
Last, week the MMA stated that mobile budgets should now be 7% of advertisers media investment. While that is great, and can do wonders to grow the mobile channel, mobile should not be seen as a one-size-fits-all strategy. Only 16% of marketers out of 250 global marketers surveyed have developed a mobile strategy aimed at building customer engagement, according to a new report from the CMO Council. So will the strategy just be 7% for mobile and call it a day?? What if there is a killer idea for mobile that deserves 10% of the budget, maybe even 50% of the budget. This could severely limit the creative output as the ever-looming “We won’t have the budget for that” will continue to take hold. Nearly half (47%) of major brands are dissatisfied with the progress of their mobile marketing efforts because of a lack of resources and talent to develop and execute mobile engagements, according to the same study by the CMO Council.
Standards will prevail in time. New ad units will pave way for greater mobile engagement. Until such time, take each mobile campaign opportunity as a way to test and benchmark new and existing strategies to drive key learnings in the space.
David Scott Bussin
Director, Mobile Sales