Mobitrove, a division of Borrell Associates, reports that U.S. businesses spent over $9.3 billion on mobile promotions and advertising last year. But the real story is found in the projected mobile spending for 2015. In just 4 years, Mobitrove analysts are expecting to see mobile marketing expenditures reach $56.5 billion or a 6‑fold increase.
The Mobitrove numbers separate advertising from promotions (special offers) and break out 2010 spending as follows:
- Advertising: $6.272 billion
- Promotions: $3.002 billion
Analysts also break out advertising expenditures into local spending ($505 million) and national ($5.767 billion). For promotions, the tilt toward national spending was even more pronounced. Marketers devoted $2.897 billion of mobile spending to the national audience but only $106 million to the local audience.
By 2015, marketers are expected to spend $40.731 billion on mobile advertising and $15.79 billion on promotions. These figures indicate that promotions will fall to about 28% of total mobile spending. In 2010, promotional spending was 33% of the total. This shift may suggest that analysts expect marketers and consumers to become more comfortable with the growing mobile channel. As a result, fewer promotions will be necessary to lure consumers to spend through that channel.
This shift may already be in the works. To date, about 30% of consumers have bought something with their mobile devices. And shoppers in the 18–34 year old age group show the highest tendency, 40%, to click the buy button on a phone or tablet. While 32% of men have made purchases this year, only 26% of women have done so. However, the latest research shows women are gaining ground in the mobile shopping channel.
Mobitrove’s numbers may seem high but Mary Meeker, an analyst at Morgan Stanley, is also looking for mobile to become bigger than desktop within 5 years. In addition, there’s clearly an interest on the part of consumers to turn to the latest technology to purchase goods and services.[Sources: Mobile Trends. Oracle/ATG White Paper. April 2011. Web. 10 May 2011; Mobile Marketing Forecast, Mobitrove.com. 2011. Web. 10 May 2011]