How Big is the Mobile Marketing Opportunity [REPORT]

The Mobile Marketing Association (MMA) released a report titled, How Big is the Mobile Marketing Opportunity, which explores the mobile ad market opportunity for both marketers and mobile ad/media sellers. Based on a study that combines empirical data about the effectiveness of mobile advertising with estimates of future mobile device market penetration, the report suggests that global ad spend could reach as much as $220 billion globally and $70 billion in the U.S. alone (excluding mobile search).  
 
While most popular projections are based solely on time spent, this analysis includes empirical data from a newly developed groundbreaking research methodology (SMoX) that allows MMA’s brand partners to measure the ROI of mobile and its optimized level in the marketing mix. The conclusions of the report confirm what many in the industry suspected: that the current allocation to mobile by marketers is disproportionately low. If marketers were to adjust their mix to align with the current patterns of marketing ROI and media consumption, marketers’ allocations to mobile would rise dramatically. In fact, early indications suggest that the optimized level of media spend should increase by 4-7x compared to current levels in the marketplace.
 
“Our analysis indicates that the amount brands should spend on mobile has been grossly underestimated and that the industry is likely to be larger than currently predicted,” said Greg Stuart, CEO at the MMA. “We hope this report challenges marketers and agencies to look deeper at how they are allocating their ad dollars, as marketing executives who choose to move first to optimize mobile advertising spend will open an important competitive advantage – a tangible share shift. For the largest advertisers, this could mean hundreds of millions of dollars of additional annual revenue with billion dollar incremental market cap implications, all without spending another advertising dollar.”
 
As the MMA continues its SMoX studies, it will gather and analyze more data in order to further assess the impact that this issue will have on the industry. For now, brands should consider using this report as a catalyst for amending their own mobile advertising strategies. Regardless of variances in marketing objectives, it’s clear that marketers, on average, are spending significantly less than they should on mobile and are losing out on sales and profits. The pace of current change by consumers to mobile presents the opportunity for winning brands to exploit innovation and grab a competitive advantage. This can be accomplished with a costless move of optimizing mobile within a mix. For mobile ad sellers and publishers, the benefit is obvious. Those who invest in best practices, strengthen their capabilities and increase their value to marketers stand to gain the most. 

To download report CLICK HERE.