Increasing spend in marketing via the mobile web is encouraging more sales for companies.
Advertising spend on the mobile web is rapidly increasing as brands take advantage of the consumer reach offered by mobile advertising with many brands adopting a “mobile first” marketing strategy in order to reach consumers via the screen on which they spend the majority of their free time time.
A recent study carried out by the Mobile Marketing Association (MMA) in conjunction with IHS Global Insight studied mobile marketing spend in the US and the impact this spend had on sales. The study, which is appropriately titled the “Mobile Marketing Impact Study” was released in May and estimates that the mobile marketing spend in 2013 will reach $10.46 billion. This mammoth spend is said to include mobile advertising, mobile CRM, and mobile direct response marketing on non-mobile media (such as QR codes in print advertisements).
The total of that spend will contribute to an economy wide impact of $216.9 billion in sales during 2013. The MMA’s projections, continue to suggest that sales will increase to a staggering $401 billion in 2015, meaning every $1 spent on mobile marketing will result in an average of $20 worth of sales.
The biggest share of mobile marketing spend is attributed to mobile advertising which accounted for just under 50% of costs this year. The $4.87 billion spent on mobile advertising this year will see a steady increase into 2015.
every $1 spent on mobile marketing will result in an average of $20 worth of sales.
InsightExpress has researched the effectiveness of mobile and tablet advertising finding conclusive, positive results. The InsightExpress findings suggested that mobile advertising performed well in key marketing goal areas, raising brand awareness, brand favourability and purchase intent. You can see the results of the Insight Express study on fig.2 of our infographic.
The MMA and IHS Global Insight study also conducted research into mobile marketing spend by ad format. Mobile web is the leading ad format for mobile campaigns whilst mobile email takes away the smallest piece of the pie. This finding confirms that marketers are on the right track as a study by Nielsen in February this year reported that approximately 65% of all mobile video is consumed on the mobile web. Video is seeing exponential growth at present, particularly with the launch of many social media video apps including Instagram, Vine and Viddy. The mobile web spend can also be attributed to marketers improving websites by using responsive designs that optimise the layout based on the size of the screen it is being viewed on.
To find out more about the possibilities of mobile marketing and advertising, get in touch with us at AdSpruce today to discover the solutions we have available.