Growth in Mobile Marketing Linked to ROI Challenges

Market watchers have been waiting for the breakout year in mobile advertising. According to Forrester projections, spending on this medium should increase from $391 million in 2009 to $561 million in 2010. While the overall numbers are still small in comparison to total interactive marketing spending, estimated to reach $29 billion in 2010, the 43% growth rate makes mobile an exciting category.

According to a survey released by R2Integrated, marketing professionals are sometimes having trouble making the case for increased mobile budgets and feel hampered by the following factors:

  • Not knowing how to make the business case 32.2%
  • Lack analytics to measure ROI 28.9%
  • Mobile has not yet become part of strategic road map 28.9%
  • Believe audience is not yet mobile 21.7%

Those marketers who are using the medium to raise awareness and generate leads often turn to the following metrics to measure their campaign effectiveness:

  • Increase in customers 48.7%
  • Increase in sales 38.5%
  • Increase in company visibility 34%
  • Increase in mobile subscribers 24.4%
  • Increase in market share 14.7%

Businesses are also considering the variety of  existing and competitng platforms which would require separate development efforts. Currently, survey respondents gave the following importance ratings to the varying platforms:

  • iPhone 59%
  • BlackBerry 40%
  • Android 7%

Matt Goddard, co-​founder and CEO, R2Integrated remarks that “most marketers are playing it safe by focusing on the mobile browsing experience.. rather than on mobile marketing where the ROI proposition is still being evaluated.” Goddard also notes that marketers are using 2010 to experiment and educate themselves on the technology and ROI possibilities associated with mobile marketing. So while most analysts still expect mobile marketing to be a big player in the future, hypergrowth rates may be a few years off.

[Sources: Forrest Interactive Marketing Projections, 2009; What’s News @ R2i, company release, January 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.