Media Bites - November 11 2010

Trends in Mobile Marketing

Michael J Massey and Chrissie Van Wormer

Imagine a world where you don’t need to carry your cash, credit cards, debit cards or even your wallet. You stop in Starbucks to order a double soy latte with a shot of chocolate and a dollop of whipped cream, pull out your smartphone, point it at the counter reader, and the sweet treat is charged to your credit card. On your way down the street, you see a pair of shoes in the window that you’ve had your eye on and they’re on sale for 45% off. Just as you had hoped, they are a perfect fit. You tap your phone on the sale tag, run it over the counter reader and your bank account is debited. Another sweet deal made even sweeter by the ease of payment. This all sounds a little like Minority Report, but mobile is rapidly changing the way consumers will do business in the digital age.

Mobile is growing at an astonishing rate. Even though mobile advertising is still in an experimental phase at this point, revenues are predicted at over $150 billion for 2011. It is also predicted that there will be over 975 million mobile web users by 2012. According to a survey by CTIA, the international association for the wireless telecommunications industry, 285 million connections were recorded by December 2009. According to a report by ABI Research, the mobile commerce market will grow to $119 billion by 2015 and will represent eight percent of the total e-commerce market.

Mobile shopping grew from $396 million to over $1.2 billion 2009 in the United States alone. This number, although huge, is nothing when compared to the mobile shopping network in Japan which tops $10 billion and the European market is expected to outgrow the U.S. by the end of 2010.

Let’s explore the opportunities that mobile offers from two very unique perspectives. First, as a consumer, the world will literally be at your fingertips. You’ll have the ability to program your DVR from your phone when you realize today is Thursday and you don’t want to miss tonight’s episode of Mad Men. While taking the train to work, you pass by an RFID embedded street sign that sends a signal to your phone to download an app. Walk through the door of your local drugstore and RFID tags embedded in the signs at the entrance let you know there’s a big sale on cold medicine as well as it reminds you to get your flu shot. On your way home, you realize you’re hungry and at a loss of what to have for dinner. You click on a foodie app and get a coupon for your favorite Asian Restaurant which happens to be just around the corner. You pick up your fragrant meal and pay for it with your smartphone. The possibilities are endless.

Now imagine this from the perspective of an advertiser. As a group, they are salivating over the limitless possibilities. This is literally an untapped market. Think about the fact that the majority of consumers read mobile messages with four minutes of the time they are received. Add to that that all carriers can receive an SMS (short message service) message. And the big plus here is that advertising messages can only be received if the consumer has opted in. These advertisers have been offered the opportunity to reach their audience in a more personal and intimate sort of way. Beyond that, this is a quantifiable media that has measured results. Gone are the antiquated media metrics of reach and frequency.

Over the next few years, it is predicted that there will be an explosive leap in mobile usage. There will be an exponential increase in mobile advertising based on the following facts: 1) RFID chips will be embedded not only in out of home advertising such as store boards, but will be used with broadcast television as well. 2) There has been an astonishing rise in the number of mobile apps that are being developed every day. 3) The launch of new and improved advertising platforms like adneedle.com that are specifically engineered to blend mobile, digital, search and social all on one dashboard. It will become easier and easier to place ads and direct where they will be offered.

What started out as a simple way to make a call, send an email or text is quickly becoming your mobile entertainment, news and business source of information. Sooner than you think you will be able to do so much more than just make a call and send text messages. You’ll be able to check your stocks, program your DVR, download coupons, make a bank deposit and even book a trip. The world will literally be in the palm of your hand.