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Mobile marketing spreads worldwide

Mobile marketing spreads worldwide

Now marketeers in Europe and the US are waking up to the benefits of the new technology

Mobile marketing, which was born in countries such as Japan and South Korea, has taken off in Western Europe and is beginning to grow in North America. As consumers move to flat-rate data plans and adopt mobile messaging, and as new platforms for advertising-supported mobile search, video, and gaming content services arrive, mobile marketing is expected to grow to more than $US24 billion worldwide in 2013, jumping from just $US1.8 billion in 2007.

"The clear difference in this market over the past 12 months has been the embrace of mobile marketing as an integral part of cross-media brand campaigns," said ABI Research director Michael Wolf. "Mobile is no longer off-limits in the minds of advertisers, but is instead seen as a very personal way to reach consumers who can be motivated through information services and compelling content, as well as through more directly relevant and targeted messaging".

The market, however, is still very much a "wild west" environment and will take time to develop. Hundreds of mobile marketing platform providers have sprung up, and larger players such as Google, Yahoo, and Nokia have made significant investments in this fast-changing market. Emerging players in the ad network and software space such as Admob, Enpocket/Nokia, and Millennial Media are becoming important new players in a market that is similar to the Internet advertising gold rush of the late 1990s.

"In these early stages, many of the technology platform players are also doubling as the interactive agencies for large brands", Wolf noted. "However, we see large ad agencies and their interactive divisions or partners increasingly working with key platform providers as roles become more defined".

Len Rust is publisher of The Rust Report


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