As we move further into 2012, the mobile advertising market is expected to grow tremendously, especially since smartphone adoption has increased. Emarketer reports that U.S. smartphone penetration is expected to surpass 58% by 2016.
Over the last few months, I’ve observed several trends and patterns that are expected to enhance mobile marketing this year. Forward thinking companies are continuing to evolve their marketing because of the following trends:
Growth of tablet adoption will enhance the mobile experience
Research showed that by the end of December 2011, 13% of U.S. consumers had tablets and an additional 15% had e-readers. The Apple iPad is said to hold 55% of the market share, while Amazon and Android are quickly gaining more users. The typical tablet owner has been found to be younger (25-44) and has higher income ($100K+).
What does all this mean? Growing tablet adoption will prove to change consumer behavior as more customers will begin shopping on their tablets – this trend was already seen during the 2011 holiday season. This means that companies should focus on building platforms that enable interactive experiences for consumers, encouraging them to shop and explore the brand further. This includes, apps and tablet specific ecommerce experiences.
Mobile Commerce Growth
Emarketer reported that in 2011, U.S. mobile commerce sales increased over 90% to reach a whopping $6.7 billon – and this is expected to grow even further. Internet Retailer reported that 18% of consumers booked a flight on their smartphone. This data shows that now more than ever, consumers are willing and able to make purchases on their mobile devices. The information is valuable as companies are looking to adopt m-commerce or mobile friendly websites. Mobile shoppers tend to be spontaneous, and in the “right there right now” moment – companies must find ways to fulfill this instant gratification.
Location Based Marketing
Imagine if you walk into your favorite retail store and you receive a coupon or discount code on your phone to use during your visit. Does this seem like an invasion of privacy or are you willing to receive the offers once you’ve officially opted in? This is a form of location based marketing, known as Geofencing. Foursquare and Gowalla offer check-in services through an initial app download, which is the most common use of location-based advertising. On the other hand, Geofencing reaches out to the customer and all they have to do is click on the opportunity. While there are concerns of being followed, as mobile technology continues to expand, location tracking may become synonymous with phone numbers.
Strong Mobile-Social Traffic
Social media is now at the forefront as more people are taking their social experiences mobile. From Twitter to Facebook, people are becoming more connected. According to comScore, as of December 2011, 64 million smartphone owners in the US accessed social networking via their mobile device – which is up 77% from December of 2010. This means that smartphones are definitely playing a larger role in people’s everyday routine.
I’d love to hear about other mobile trends you’ve heard of this year. I may put together a “how-to” guide for those interested in Location Based Marketing… until next time!