Mobile has grown faster than any other new medium over the past century and doesn’t show any signs of slowing down. Currently, 31 percent of the U.S. population has smartphone’s, but that number is increasing every day. Here are just a few predictions that speak to the enormous growth of this medium:
- Morgan Stanley analysts predict that the number of mobile Internet users around the world will surpass desktop internet users by 2013. By the end of 2020, they believe that 10 billion mobile Internet devices will be in use, up from 2 billion today. The Pew Research Center reports that nearly half of all American adults (47 percent) say that they receive at least some of their local news and information on their mobile phone or tablet computer.
- Gordon Borrell says that local mobile advertising in the United States will grow from $285 million in 2009 to more than $4.7 billion by 2014. BIA/Kelsey expects U.S. mobile local advertising revenues to grow from $213 million in 2009 to $2.03 billion in 2014, at a 57 percent compound annual growth rate.
- BIA/Kelsey defines mobile local advertising as that which is targeted based on a user’s location and/or actionable locally.
Mobile will grow faster than any other ad media in its first 10 years of household penetration and media companies across the country are quickly creating their own mobile websites and/or apps in order to capitalize on this growing medium. Local advertisers seem ready to jump on the mobile trend much faster than they have the adoption of the Web.
One particular area of interest for local advertisers is mobile couponing, and for good reason. Borrell Associates found that mobile coupons offer a greater return on investment for advertisers with redemption rates up to 10 times that of coupons distributed in print.
There are strong benefits when a local advertiser adds a mobile component to a traditional media campaign. First, the advertiser’s message has an exclusive on-screen presence and is a highly personal media channel. Advertisers are also able to reach a younger demographic audience (the bulk of mobile internet use comes from 25 to 44 year olds) and can set up custom landing pages that ensure a clear offer from the advertiser. Mobile ads also have higher click through rates than the basic online average.
According to Art Howe, chairman/ founder of Verve Wireless, mobile networks across the country are seeing strong growth in the following advertising categories:
According to a 2010 Borrell survey of 3,300 business owners, 15 percent identified that they have tried some form of mobile advertising.
Looking ahead, 44 percent said that they would be somewhat likely to try mobile advertising in 2011. Now is the time to delve into this fast-growing advertising medium!