Mobile marketing has been a promised (and unfulfilled) reality for over a decade.
Today, marketers are trying out new ways to monetize mobile phones beyond the standard display and text ads, thanks to Google (who spent $750 million to buy AdMob), Apple (who just bought mobile-ad company Quattro Wireless), and several start-ups like FourSquare and Loopt. They're offering small steps towards a mobile future. Small, but strong steps.
Google, for example, is said to be releasing a smartphone-ad format that allows users to search for a business and click to call when they find it. Volkswagen is creating an application to monitor service appointments, and Best Buy has in the works an app to improve the retail experience.
Still, spending on mobile ads in the U.S. remains small. The Wall Street Journal points to an e-Marketer report that says just $416 million was spent in 2009, up from $320 million in 200. Considering the total U.S. advertising market is $22.4 billion, those numbers are still only rounding errors.
From the WSJ:
Growth has been slower than expected as many mobile Web sites have yet to generate significant traffic and marketers have had a tough time creating campaigns. EMarketer predicted last February that mobile-ad spending would be $760 million in 2009, growing to $2.4 billion in 2012. The research firm now estimates that mobile-ad spending will reach just $1.1 billion by 2012."The growth has been disappointing," says Mark Read, CEO of WPP Digital, the group within WPP working to develop the ad company's digital offerings. "The only large numbers on the table are the prices of the acquisitions—not the amount of revenue they're generating."
Graphic source: The Wall Street Journal
