Saturday, September 27, 2008

The Growth of Mobile

Digital marketing can expect to do well, but the mobile channel will outperform the online segment of digital. Its all about numbers, compared to laptops and PCs, mobile users are much more numerous, and this makes mobile's growth potential seem almost limitless. As reported in a recent Mobile Marketing article "Mobile has both the greatest potential for advertising growth and one of the best current growth profiles in the near term, surpassing even the online segment"

The same article quotes IDC numbers which show slower growth for online spending in the second quarter of 2007 (18.9 percent, compared to 25.9 percent in the second quarter of 2007). According to the author, mobile will continue to grow. Mobile's growth is attributable to the number of users it can claim. There are 2.4 billion subscribers worldwide and "between 80 percent and 49 percent actively using SMS on a regular basis. Western Europe boasts 80 percent usage, while the United States lags at 49 percent, though usage here is growing steadily. Advertising spending on mobile is slated to approach $1 billion by the end of this year, according to Juniper Research, and surpass $7.5 billion by 2013."

Mobile is growing in the U.S. and across the globe, a trend which is increasingly being recognized by advertisers and marketers. Developed Asia is expected to increase from a 2008 level of $414 million to $2.1 billion by 2012. China alone saw mobile and online revenue growth of 65 percent between 2007 and 2008, with a corresponding ad spend increase of 20 percent, according to mediabuyerplanner.com.

The Mobile channel has unprecedented growth potential. "Mobile is, in any climate, the channel of the future."

Next: Making Mobile Marketing Work for Your Business

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