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7 Compelling Reasons to Invest in Mobile Marketing

Sylvia Jensen
Sr. Director of EMEA Marketing

Mobile has experienced a meteoric rise in recent years. Smartphone and tablet usage has exploded, and the widespread proliferation of mobile devices is changing the way consumers and B2B prospects access media and online information.

  • Over the past four years, smartphone usage is up 394% and tablet usage up 1,721%
  • These platforms combined now account for 60% of all digital media time, spent according to comScore.
  • Up to 29% of consumer media time is now spent on mobile platforms.

Despite the undeniable growth of mobile as a media channel, there is evidence that its increasing importance is not being matched by increasing investment from the marketing industry.

The main reason for this appears to be a perceived inability to measure return on investment from mobile marketing, as compared to other channels such as email and pay-per-click advertising. The Oracle Marketing Cloud/Econsultancy Marketing Budgets 2016 survey revealed that respondents are spending only 4% of their digital marketing budgets on mobile marketing

Martin Sorrell, CEO of the WPP group of agencies, opines that there is a lack of clarity around ROI in mobile marketing, which is putting marketers off spending budget there:

“Underinvestment in mobile… is due to a lack of clarity around the measurement of mobile advertising,particularly in the ‘walled garden’ ecosystems of Facebook and Google. Creativity on mobile is one thing, but measurement is another; people are not sure of the ROI of mobile advertising.”

When asked to rate the ability to measure ROI for mobile activity, marketers in the Oracle Marketing Cloud/Econsultancy study supported this view.

  • Only 18% said ROI of acquisition using mobile marketing was good
  • Only 15% said ROI of engagement and retention using mobile marketing was good

7 Compelling Reasons to Invest in Mobile Marketing

Mobile holds many advantages and benefits for marketers, as companies are increasingly discovering. Despite the ROI reservations, mobile spend is rising. Younger marketers more likely to see the benefits, according to Accenture survey Interactive’s CMOs: Time for digital transformation.

1. SMS offers a speedy, high engagement way to reach customers.

Almost 90% of SMS/text messages are opened and read within three minutes of receipt, making SMS a perfect way to alert customers to upcoming sales, same-day discounts, contests, new products, or delivery shipment status.

Compare this with an average open rate of 27% for emails, and you can see how text messages are a powerful and compelling marketing tool.

2. Mobile helps to enhance the cohesive customer experience

Given the high penetration of mobile usage, marketers should treat the medium as an opportunity to help deliver the cohesive customer experience that 73% of them say they are working towards (Oracle/Econsultancy Marketing Budgets Survey 2016).

To achieve this, it’s crucially important to provide a mobile experience that is streamlined, attractive, user-friendly and in keeping with the brand experience across other channels.

3. Brand apps create engagement and a sense of ownership

Smartphone apps create a connection between the brand and consumer, by giving the user a personal, easily accessible ‘slice’ of the brand, in the palm of their hand.

The presence of the app on their phone helps to create a deeper connection that a website, particularly if they are signed in with a user account, as many apps require they do.

4. Push notifications allow for targeted communications

Integral to the brand app mobile experience are push notifications. These allow  brands to reach their mobile app users with messages, which can be highly targeted to segments of the audience.

Insights provided  by the technology include type of device, location, language and usage habits. Using the information available, different groups can be targeted with special time-sensitive promotions, for example.

5. Mobile data management platforms offer powerful insights and capabilities

The data management platform (DMP) is a technology that helps to manage ad spend, targeting, and measurement across multiple mobile platforms,

With a mobile DMP, marketers can build sophisticated audience segments and scale them with third-party data, and run cross-platform mobile and web campaigns. They can also leverage deep mobile integrations to activate data across top execution platforms and power targeted mobile in-app, web, and video ads.

You can connect audience interactions across mobile and desktop touch points, and generate revealing audience analytics beyond simple clicks and likes.

6. Multimedia messaging is on the rise

With ownership of high-spec smartphones now the norm, brands have the added opportunity to reach customers via multimedia messaging, which allows for engaging image, audio and video content to be shared.

7. The younger generation are highly attuned to mobile

And not just the consumers! A survey by Accenture found that marketing executives under the age of 35 give significantly more weight to mobile (38%) than those over 35 (18%).

The same study also revealed that 7 out of 10 marketers aged 50 and younger believe that mobile is an important channel for reaching customers and prospects, compared with fewer than 5 out of 10 aged 51 and older.

With mobile inexorably rising, it’s time for marketers to start investing in the future, or risk getting left behind.

Main Takeaways

  • Mobile and smartphone usage have boomed over recent years, now accounting for 60% of all digital media time
  • Studies reveal that investment in mobile marketing is low compared to its importance
  • Marketers seem hesitant due to a perceived difficulty in tracking mobile ROI

Discover the latest insights on how mobile is transforming the marketing landscape by downloading The CMO’s Guide To Mobile Marketing.

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