From fierce wireless:
Mobile advertising budgets will buck downward trends in overall adspend and exhibit strong growth over the next five years, reaching $5.7 billion by 2014, according to a new forecast issued by Juniper Research. Juniper notes that in the wake of worldwide economic downturn, ad budgets are migrating from above-the-line to below-the-line channels, with the mobile platform emerging as an increasingly significant recipient of adspend thanks to a growing emphasis on consumer engagement and quantifiable ROI.
Juniper nevertheless stresses that while mobile advertising’s growth is encouraging, the medium is still far from established, and even by 2014 it will still account for just 1.5 percent of total global adspend. The reason: While a number of major brands have made large investments in mobile, they remain the exception, and most advertisers are not yet convinced the mobile channel offers sufficient reach to warrant substantive investment.
For more on the Juniper forecast:
- read this release
We at Mobivity are very excited about the future expectations of our industry and believe the forecasts, as good as they are, might even be a bit conservative. The conversion rates on Mobile are far far far greater than radio, television and print. A great example is a customer of ours, a well known rock band, has been offering free downloads at their concerts by texting a key word to our short code. I spoke with them recently and they informed me that 1 in 4 individuals that text in for the free download have been opting to pay $15 for a download of a whole concert. 25%!!! Hello!!!! They said they would have been thrilled with 5%. Nothing like the power of mobile.