By Keith Trivitt | Director, Marketing and Communications
There’s no question that mobile marketing and advertising is the hottest area of digital marketing at the moment. Big consumer brands are seemingly tripping over themselves to launch the fanciest mobile app.
We’ve written a lot recently about the foibles of mobile marketing campaigns that don’t have a direct lead generation or sales component tied into them. Heck, it’s for this reason that we launched MediaWhiz Mobile, our new mobile performance marketing service. Advertisers and publishers consistently tell us there is a big need to help them more profitably engage, acquire and retain customers and generate mobile-specific traffic.
And yet a number of leading advertisers complain that all of their mobile spending doesn’t improve their most important marketing metric: sales.
Mobile certainly captures a lot of eyeballs but its ability to produce a consumer action — leads, sales, downloads, etc. — is often lacking.
That may be starting to change, though. A recent eMarketer report shined some light on how mobile branding and marketing campaigns are starting to translate to sales and brand lift. And, most crucially for advertising, mobile marketing spending is beginning to make a serious dent in consumers’ purchase intent.
The Mobile Marketing Association (MMA), in partnership with IHS Global Insight, studied U.S. mobile marketing expenditures and their impact on sales for the “Mobile Marketing Impact Study,” released in May. The study found that this year spending on mobile marketing — including mobile advertising, mobile customer-relationship management and mobile direct-response marketing on non-mobile media — will reach $10.46 billion. By 2015, spending on the channel will approach $20 billion.
All of that sounds great, but what it does it mean for actual sales and leads generated? Well, quite a lot actually.
InsightExpress found that in 2013, mobile and tablet advertising got strong results across brand health metrics, raising ad awareness, purchase intent and brand favorability. Tablets performed particularly well.
The below chart breaks down how mobile marketing performs across several critical brand metrics.
While there is still quite a ways to go before mobile marketing becomes a true customer-acquisition channel, the key metrics are moving in the right direction. For performance marketers, where consumer purchase intent is crucial, this is a welcomed sign.