 Mobile
Marketing Emerges With Couponing
According to the
Executive Summary of the recent Mobile Marketing report from Borrell
Associates, mobile media has emerged as the next big wave in
advertising, mainly threatening the Web, but also peeling significant
expenditures away from direct mail and yellow pages.
Mobile
marketing is set to reach dominant penetration levels faster than any
medium before it, thanks to an existing installed base of cell phones
(80% of the population) rapidly being exchanged for smart phones
(currently about 31% of the population and growing). By contrast, when
the Internet was born as a commercial medium in the mid-1990s, only 8%
of households had a modem-enabled computer.
After radio, the
first electronic new medium, aired the first commercial in 1922, it
took 30 years, then 28, then 15 for the next new medium to arrive,
from TV advertising in the early 1950s to cable advertising in the
late 1970s to the Internet in the mid-1990s.
The study sees
fundamentals in place for mobile that will boost its trajectory over
the next five years beyond what broadcast TV reached in the 1950s and
the Internet reached in the late 1990s.
For these reasons,
Borrell (http://www.borrellassociates.com)
is developing a series of reports focused on mobile marketing
advertising. The first sets the stage by quantifying the context
within which mobile marketing will unfold, and tackles mobile
couponing, a major key to the emergence of mobile marketing, according
to the report.
Text-based coupons are the fastest-growing and
most obvious mobile marketing application, and the easiest to
implement, says the report. Redemption rates for mobile coupons are
10x that of mail or newspaper distributed coupons. The report
summarizes the future by noting that a restaurant in Texas pays $37 to
send out 500 text messages for a "buy-one/get-one-free burger" offer
and gets 60 people to walk in the door, for incremental revenue of
$1,000 per day.
Last year online marketing captured $44 billion
in spending while mobile marketing reached $2.7 billion. The report
expects total online marketing to grow at about 13% compounded
annually, to $80 billion by 2014. Mobile will grow at 84% per year and
hit $57 billion by 2014.
In addition the report expects to
foresee "local" online advertising growing at an unusually brisk pace,
doubling every year for the next three. Local mobile advertising
totaled $285 million in 2009; the report forecasts it to double this
year to $586 million, then spike upward to $11.3 billion by 2014.
Jack Loechner April 2010
http://www.mediapost.com
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