European Brands Not Necessarily Gung Ho on Mobile
Upon closer inspection, a recent European mobile marketing spend report reveals brands are approaching the medium with caution.
Mobile messaging is greeted with mixed opinion, according to an independent survey of 50 of Europe’s global brand names.
Although the study, commissioned by Airwide solutions, appears on the surface to provide encouraging statistics for the world of mobile marketing, a closer look reveals brands are approaching the medium with caution.
Key findings state that 71 percent of brands anticipate spending up to 10 percent of their ad budgets on mobile marketing within two years, compared to 54 percent shown in a similar survey conducted in 2006.
The Airwide survey also states that the portion of brands considering implementing both SMS and MMS ads in the 12 months following July 2007 has doubled to 28 percent since the previous 12 months.
Contrary to previous reports, this statistic does not imply that messaged-based advertising as a whole will double, as it refers directly to brands intending to use both formats. In fact, the survey reveals that 49 percent of brands are planning to use neither SMS nor MMS ads at all, compared to 47 percent in 2006. The amount of European respondents planning to use SMS alone in the next year also dropped, sliding from 31 percent last year to 13 percent through July 2008.
If anything, the data suggest brands may be moving away from the message format.
“It’s good that companies are investing in research into the area, but to be honest, I’d say that current mobile spend is probably less than 1 percent of a brand’s marketing budget,” Laura Marriot, president of the Mobile Marketing Association told ClickZ News. “A spend of anywhere near 10 percent in the next two years seems like a very optimistic figure.”
A recent Jack Myers Media Business Report shows mobile advertising in the U.S. won’t reach 1 percent of total ad spending until 2009, when the media research firm expects total U.S. ad revenues to hit $254 billion.
The Myers report estimates mobile ad spending by U.S. advertisers, currently at about $500 million annually, will rise by 120 percent in 2008, hitting $1.1 billion. The report predicts mobile ad revenue to rocket another 120 percent the following year.
According to the Airwide report, almost half of the brands questioned (46 percent) said that they were concerned about the intrusive element of mobile marketing, and of these, 41 percent said they weren’t sure how to alleviate the problem.
Overall, more than half of brands have not yet embraced messaging for marketing purposes, with 58 percent not using SMS, alongside 60 percent not using MMS. The portion of brands concerned with MMS reliability has also reportedly raised from 12 percent in 2006 to 34 percent this year.
