10 things you need to know about mobile marketing

eMarketer estimates that mobile ad-spend will increase to almost $37 billion in 2016 on smartphones and tablets, up from $8.4 billion in 2012, (display and search). Here, Phalgun Raju, VP & GM for India, Southeast Asia, Hong Kong & Taiwan at InMobi provides 10 things that you need to know about mobile marketing.

1. Smartphone shipments will pass 1 billion by 2014

According to IDC smartphone shipments are expected to pass 1 billion for the first time in 2014. The smartphone and tablet brigade will out-ship PCs in 2013 by 3:1 and the ratio will grow to 5:1 by 2017. This rapid adoption of smartphones is driving a mobile Internet boom and consequently a medium that marketers will ignore at their own peril. If marketers want to be first, their strategy needs to be mobile first.

2. Smartphones will outsell feature phones in 2013 for first time

It is finally happening! Smartphones will overtake feature phones in worldwide sales, thanks to falling prices of smartphones and 4G network. IDC estimates that manufacturers will ship 918.6 million smartphones in 2013, which is about 50.1 percent of the industry’s total shipments. Strong demand in developing countries with large populations such as China, Brazil, and India is driving much of the demand. This is a big shift from the past. Marketers need to fundamentally change their marketing strategy to respond to this sweeping change in device landscape and attendant consumption habits.

3. Mobile devices rule media consumption

In a typical day, approximately how much time do you spend on media? Source: InMobi, “Global Mobile Media Consumption”conducted by Decision Fuel & On Device Research, Feb 2013

According to InMobi’s Mobile Media Consumption study, mobile Internet users globally spend more time on their mobile, compared to even TV. Mobiles now account for 108 minutes of the global average seven hours of media consumed per day, outstripping desktop usage (93 minutes per day) and TV (92 minutes). Tablets (37 minutes) were the fifth highest medium by time spends, not far behind radio (52 minutes).

4. Mobile traffic is moving fast, ad-spend to mobile are not

Mobile represents 15% of global Internet traffic and is growing at a rate of 1.5X per year and is likely to maintain this pace or accelerate, according to the Mary Meeker Report. However, ad-dollars are not following the users on mobile. Even in a mobile marketing savvy market such as the US, the gap between dwell time and advertising dollars on mobile represents a $20 billion opportunity.

 

5.Mobile apps have left the mobile web far behind

Mobile app use is accelerating. Mobile apps represent more than 75% of global ad-networks. According to a survey conducted by InMobi, 27% of global respondents stated they have actively used 6-10 apps in the last 30 days. Whether it is a brand manager trying to create the next destination for the consumer, or a media planner looking to reach the target audience, mobile apps will play a central role in the plan.

Of all the apps you currently you have, how many have you actively used in the last 30 days? Source: InMobi, “Global Mobile Media Consumption” conducted by Decision Fuel & On Device Research, Feb 2013

6. Multi-screening is on the rise

Multi-screening is the phenomenon of consumers using more than 1 device simultaneously. According to InMobi’s Mobile Media Consumption study, 62% of mobile web users indulge in multi-screening while watching TV. Those in the 20-34 are the most likely segment to engage in multi-screen behaviour, at 69% Significantly, 18 per cent of the respondents reported searching for additional information about the products they’d seen on TV. This has huge implications for marketers, as campaigns can be truly multi-channel and complementary.

How do you typically use your mobile while watching TV?
Source: InMobi, “Global Mobile Media Consumption” conducted by Decision Fuel & On Device Research, Feb 2013

7. Rich media drives consumer engagement

Source: InMobi, “Global Mobile Media Consumption” conducted by Decision Fuel & On Device Research, Feb 2013

Mobile offers brands a creative canvas that until recently was limited to TV.  Rich media ads on mobile are up to four times as effective as standard banner ads in terms of clickthrough rate (CTR), according to a new report from Opera Mediaworks. The study also found that in-app mobile ads are an average of 1.7X more effective than ads on the mobile web. Rich media ads achieved a CTR of 1.53% when displayed in an app and 1.12% on the mobile web. In comparison, standard banner ads achieved CTRs of 0.39% and 0.32% respectively.

8. Mobile display ads are much more than banners

eMarketer estimates US advertisers will spend $2.2 billion on mobile display advertising in 2013 and diversify investments across a wider range of ad formats. Unlike three years ago, when there was little more than the static banner to choose from, advertisers looking to engage mobile users now have an array of display ad options at their disposal. These include interstitials, native ads, expandables and timerstitials to name a few.

As mobile marketing gains traction, marketers are looking for the best ways to measure the channel and use the data it provides to build relationships with customers. Marketers can look at measurement metrics such as reach, frequency, viewership, and engagement to performance metrics such as cost per action or rely on the third party monitoring platforms

9. Consumers are comfortable with mobile ads

Brands and marketers looking to engage with consumers throughout the day are embracing mobile. Devices are usually ‘always-on’, increasing the chance of messages being seen. According to InMobi Mobile Media Consumption study, 59% of mobile web users are now as comfortable with mobile ads as they are with advertising in television and online ads.

Compared to other forms of advertising like TV or online, how comfortable are you with mobile web and mobile app advertisements (not SMS)?
Source: InMobi, “Global Mobile Media Consumption” conducted by Decision Fuel & On Device Research, Feb 2013

10. Mobile ads drive purchase behavior

Has mobile advertising ever…
Source: InMobi, “Global Mobile Media Consumption” conducted by Decision Fuel & On Device Research, Feb 2013

Mobile ads influence purchase behaviour directly.  According to the study, 75% of those surveyed said they had discovered something new via their mobile device and almost half (46%) said they had purchased something using their mobile devices; 45% of respondents said that ads viewed on their mobile device have influenced an in-store purchase.

Phalgun Raju is VP & GM for India, Southeast Asia, Hong Kong & Taiwan at InMobi  Follow InMobi on twitter here.