Businesses and Brands Allocating More Funds to Mobile

Yesterday, I blogged about the expected growth rates in mobile marketing and how specific age groups find some mobile ad types more appealing than others.  Many industry watchers expect 2010 to be the ‘break-​out’ year for mobile marketing. As a result, DM2PRO and Mojiva recently polled industry professionals regarding their planned use of mobile marketing in 2010.

The findings were divided by business type and are summarized as follows:

Agencies: This group noted that the average client allocated $143,000 in mobile ad spending in 2009 and expected it would increase that amount to $260,000 in 2010.

Brands: Companies that are already using mobile to promote their brands expect to more than double their spending. Average spending will increase from $269,000 in 2009 to $679,744 in 2010.

Publishers: Mobile publishers receive nearly half (49%) of revenue from ad money. These publishers sell their mobile space as a separate property nearly 2 out of 3 times. However, up to 2/3’s of mobile publishers also bundle the space with ‘other media sales’.  This ad space is growing but, to date, “only 25 percent of mobile publishers sell out more than half their inventory.” Participating in ad networks is a popular way for publishers to bring in revenue. Nearly 6 in 10 (58.2%) are in a mobile ad network and  publishers count on 60% of ad revenue from this source.

The survey also revealed that more businesses will delve into mobile marketing this year. Up to 20% of newcomers plan to allocate at least 10% of 2010 marketing spending to the mobile effort.  In addition, nearly 1 out of 3 businesses say the funding for the new mobile efforts will be incremental. With numbers like these, it’s easy to see why so many analysts expect 2010 to be a good year for mobile.

[Source: “Survey of Digital Marketing Industry Projects Hike in Mobile Ad Spending.” Mojiva. 16 Mar. 2010. Web. 24 Mar 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.