At least 85 percent of marketers intend to increase funding for mobile budgets this year, according to a 2013 report by the Association of National Advertisers (ANA) and MediaVest. As many as 96 percent of the marketers polled either use or plan to use mobile marketing in future strategies.
There is no doubt that mobile marketing is on the rise, coinciding with the popularity of tablets and the growing number of business-based apps that companies such as Purina are using to attract on-the-move customers. But with the surge of mobile initiatives, problems are also becoming more common. The report cited brand building and brand management as the key challenges that marketers struggled with when constructing their mobile strategies. Awareness and customer loyalty were also frequently mentioned challenges, proving that mobile adoption rates need to increase for companies to gain more confidence.
On the back end, marketers are struggling to create tangible results that can impress executives and fuel future strategies. Around 21 percent of the marketers surveyed said they had been “solidly successful” in mobile ROI and accountability, a decrease from 2010 numbers. Implementing a strategic mobile road map that drives business results and making optimizations from analytics seems to be a challenge for many firms. At least 42 percent of the marketers admitted worries about mobile metrics and the ability to prove ROI.
At the start of 2013 the most common project was mobile website development, cited by 84 percent of marketers. A mobile search function, a company app, and a general mobile advertisement display were all close contenders, showing a strong spread across many different levels of mobile strategy. If these teams have their way, 2013 will add location-based services to the mix, too.
“Mobile is a huge opportunity for marketers – territory that has yet to be fully tapped,” said Bob Liodice, ANA President and CEO. “Brands are clearly excited about the possibilities, but at the same time, perceived success rates have not increased significantly. The industry as a whole must move quickly to standardize measurement practices and address privacy issues.”
Despite the struggles and mobile budget concerns (funding is often drawn from competing sources like traditional or digital marketing), businesses prefer mobile content for several reasons. First, it can reach unique, younger demographics that are more likely to buy from their smartphones. Second, mobile marketing can provide immediate solutions to consumer needs, rather than forcing consumers to go home and visit a website to find information. Third, such strategies allow for greater location awareness, both for consumers looking for businesses and for companies analyzing customer buying patterns.
Mad Mobile is the leading provider of mobile-first solutions for the world's top companies and retailers.
Looking for a technology partner who can deliver amazing mobile solutions across multiple mobile interfaces?