While traditional marketing budgets may have included Web site, print, TV, radio, and off-line campaigns, today’s growth of mobile users is changing how the marketing budget pie looks.
The growth of opportunities to reach and market to consumers via mobile devices has transformed how we market today. While traditional marketing channels, such as TV or radio, are fully dependent on being at the right place at the right time, mobile marketing offers marketers the ability to push ads at just the right time and even in the right place.
The Shift To Mobile
Since 2012, mobile marketing spend has been on the rise. In fact, recent statistics predict that mobile advertising in the U.S. will quadruple by 2017 from 2012 levels. If that’s not enough, a recent ad spending forecast from eMarketer predicts that mobile marketing ad spending will bypass current desktop digital ad spending by next year.
What does that mean for traditional advertising channels? Statistics show a sharp decline in advertising spending in radio, magazines, and newspapers. We can call these the “casualties” of mobile marketing. How will marketing budgets be reallocated to meet the growth of mobile marketing opportunities?
The Future Marketing Plan
With mobile marketing radically altering and surpassing traditional marketing channels, marketers and decision-makers are reallocating marketing budgets to meet the needs of tomorrow. Here’s what tomorrow’s marketing plan will most likely consist of:
• Web site: While spending here will not change drastically, the rise of mobile marketing and the need to be accessible on mobile devices will prompt businesses to invest in their Web sites to ensure a mobile-friendly experience. From a complete redesign to a more mobile-friendly version, business owners will most likely allocate a portion of their marketing budgets to enhancing or improving their Web sites.
• Search marketing (SEO and PPC): Digital advertising will continue to be at the forefront of companies’ marketing strategies as a means to be discovered and drive business. Whether they choose search engine optimization or paid search to attract traffic to their Web sites, we can expect businesses to continue to spend in their online visibility.
• Mobile advertising: Mobile ad spending will rise sharply. eMarketer’s forecast predicts an increase of more than 600% in total mobile ad spending by 2019, an increase of more than $55 billion from 2013. When it comes to mobile advertising, we can expect to see companies investing marketing dollars in:
- Display banner ads: Display banner ad spend will be showing up as a new slice of the marketing pie.
- Video ads: Thanks to high consumption of video content via mobile devices, it’s no wonder that video ad spending is now showing up on marketing budgets.
- Mobile search ads: Finding customers in their exact moment of need is what mobile is truly meant to do. Marketers are certain to allocate marketing budget to capturing the attention of mobile users.
- SMS ads: Just like landing in someone’s inbox used to be the key to getting to them, SMS ads allow marketers to get to consumers’ cell phones–an invaluable accomplishment.
Every category of mobile advertising, from display to SMS, will be expected to take up a larger part of the marketing pie, eating away at marketing dollars previously allocated to other mediums.
• Social advertising: According to Social Media Examiner’s “Social Media Marketing Industry Reports: How Marketers Are Using Social Media to Grow Their Business,” advertising on social sites like is a growing priority for business owners, specifically small business owners.
• Email marketing: As one of the most cost-efficient marketing channels, email marketing will still be a part of the marketing equation. As a key integrator between online and offline advertising, email marketing will continue to help turn online interactions into tangible connections between companies, consumers, and prospects.
• Offline advertising: Whether it’s trade shows, outdoor signs, or print advertising, most modern companies will put the least emphasis on off-line advertising. Although these channels are not going away, the move toward mobile will mean dollars previously allocated to offline advertising and traditional media, such as TV and radio, will be shifted to mobile.
The New Marketing Plan
The growth in smartphones and opportunities to market to consumers via mobile devices has turned the typical marketing plan on its head. While explosive growth in mobile advertising should not mean death to traditional advertising by any means, it does mean that your marketing plan should be revisited and adjusted to ensure you’re investing in the right channels for maximum ROI.