||Mobile Messaging to Rack Up $7.4 Billion in Ad Spend by 2017
Mobile messaging ad spend will reach $7.4 billion by 2017, driven by a surge in location-based services, according to a new report from Juniper Research.
The Mobile Ads for Mobile Apps paper predicts that location-based SMS will become increasingly attractive to marketers as it allows more relevant ads to be delivered to consumers.
The research found that brands perform better with a joined-up mobile strategy, with ads that adequately link to mobile-optimised sites or content and help drive m-commerce opportunities. Juniper Research also predicts that in-app advertising is likely to increase rapidly along with location-based SMS ads and should hit $7.1bn in ad spend in the next three years.
A significant benefit of SMS marketing to advertisers is that it is a cheap method of reaching consumers. In the UK, a bundle of 1,000 SMS ads currently costs approximately £0.05 ($0.08) per message, dropping to lower costs for larger amounts.
"Sending advertisements using mobile messaging gives advertisers a simple, cheap and effective way of reaching consumers. Adding location technologies is an even more powerful proposition, particularly for transactional advertising as marketers can reach consumers who are near a location where they can purchase," says Juniper Research report author Charlotte Miller. "Knowing that the recipients of an ad have actively asked to receive it and will in all likelihood open it is also particularly attractive."
Mobile web traffic is rapidly increasing. According to Latitude Digital Marketing's Q1 2012 Mobile Report, it has increased by 202% in the last 12 months with more than one in ten consumers using smartphones to access the internet.
(Source: David Hing, M&M Global, 08/20/12)