HBO's Not Bored to Death of Mobile Marketing

EDITOR'S NOTE: I love this concept! It utilizes taxi cab down time to make it a useful and educational interaction. Think about how you can educate your local public to get the deals and coupons they want from their mobile phone...table tents, bus ads, banners, get creative!!! View our products at AdKing.com.

Mobile marketing provides infinite ways to creatively reach your audience, but the biggest hurdle in just how creative you can get may come from your audience not understanding how to interact with your campaign. From simple text messaging to code scans for special offers, opportunities to market via mobile are aplenty.

But where does the education happen that takes the average mobile phone owner to targeted marketing consumer in this interactive mobile marketing day of age?

HBO (Home Box Office / Time Warner) is on a mobile marketing education kick in the city that never sleeps and is always on the go. This month, the company had teamed up with Modavox to run ads in New York taxi cabs teaching riders how to use their mobile phones to access information and video trailers for its original series Bored to Death.

This campaign leverages the ubiquity of mobile phones with the rare opportunity for down-time in New York, enabling mobile consumers who are literally on the go to interact with the ad during their ride, says Anthony Iacovone, Chief Innovation Officer of Modavox and Founder of Augme Mobile(TM).

HBO worked with Augme Mobile (owned by Modavox) through Details Magazine to augment the print advertising campaign by deploying the mobile marketing tactic through Clear Channel Communications Taxi Media presence in New York. The taxi cab ad instructs passengers to use their mobile phone to text bored to 87415 or use their camera phone to scan a unique 2D code to sign up for mailing lists and obtain access to special content about the New York-based show.

Increase in iPhone uptake good for marketers

North America accounts for 58 percent of all iPhone and iPod touch users, according to a new study.

AdMob's Mobile Metrics Report along with data from Apple shows significant growth in iPhones, iPod touches and other smartphones.

"There are similar growth patterns around the world," said Mike Fyall, product marketing manager for AdMob, San Mateo, CA. "In general, we've seen high browsing and as more and more iPhones and iPod touches are distributed throughout the world it's a great platform for marketers."

AdMob, one the world's largest mobile ad networks, looked at its 16.8 million users and the iPhone's sales figure of 45 million units sold to map the geographic location of users.

According to Mr. Fyall, AdMob's data shows iPod touch usage is up worldwide, especially internationally.

Their data estimates 13 million iPhone and 12 million iPod touch units sold to date in the United States, the average ratio being two iPhones to one iPod touch or 68 percent to 32 percent.

Mr. Fyall said growth patterns for the iPod touch are similar to that of the iPhone.

"The iPod reaches a slightly different demographic, you don't need an expensive data plan," he said. "Marketers could target different audiences."

The study shows 54 percent of iPhone and iPod touch users are located in the U.S., down from 61 percent in January.

However, international growth is up with Britain, Germany and France, as each have more than 5 percent of users. Western Europe makes up a total of 26 percent.

"The international component makes up 46 percent of devices," Mr. Fyall said. "[This] gives a unique ability for marketers to reach global audiences."

AdMob's study finds a higher and "surprising" amount of iPod touch usage in Canada and Mexico.

What's interesting is that in some countries the iPod touch has taken hold more than the iPhone.

With more units being sold across the globe, the opportunity for mobile marketing expands.

"There are a lot more opportunities to reach the audience because people are using [devices] at a much higher rate," Mr. Fyall said. "With the advanced functionality like video, etcetera, there's more you can do than before. The more iPhones are sold and distributed the better for marketers."

Apps hot right now, but mobile Web will win

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NEW YORK - Will applications finally monetize mobile media and marketing from the years of hype, big promises and frustrating potential?

That issue was deliberated on by panelists during the digiday: Mobile conference yesterday in New York’s W hotel on Lexington Avenue. The experts discussed what the future really holds for the mobile application and if there is a genie in the bottle.

“The application did not save mobile advertising -- it just significantly enhanced the opportunity,” said Eric Litman, CEO of Medialets, New York. “What we have seen in the past year-and-a-half is a viable distribution model and significant uptake by consumers.”

The opportunity is that consumers now know that their mobile phones can be used for much more than just making voice calls. They can now download, browse the Web and send SMS and MMS messages.

Indeed, there has been a significant adoption of smartphones, empowering consumers to do more with their mobile phone. This phenomenon has attracted marketers, the panelists said.

Applications for phones such as the iPhone, BlackBerry and Android devices are seeing significant numbers in terms of downloads.

“The application enhances the advertising experience and therefore is a vehicle that marketers can use to reach consumers who, by the way, are very attached to their mobile phones,” said Brian Murphy, east coast director of AdMob, San Mateo, CA.

Consumers can now see ads, respond to them, watch a video, locate a store on Google Maps and even click to call the advertiser.

“This makes the experience richer and therefore makes the opportunity richer,” Mr. Murphy said.

The panelists all agreed that the application is only the beginning of what mobile marketing will be.

One of the panelists -- Jeff Glueck, CEO of Skyfire, Mountain View, CA -- spent a decade spending money on digital at his old job with Travelocity.

“We are at just the beginning for mobile,” Mr. Glueck said.

That said, 80 percent of mobile marketing is direct response, he said. Many applications currently are ads.

Although the iPhone only makes up about 8 percent of the market, it has really done a lot for the industry in terms of opening up the decks. It has brought the industry opportunity.

“Mobile is sort of where AOL was in 1996,” Mr. Glueck said. “I think that apps are hot right now but the Web will win out and maybe the Web-based apps will.”

Mr. Glueck's argument was that marketers are not going to create applications for every platform.

Marcus Startzel, senior vice president of sales at Millennial Media, Baltimore, MD, believes that the market is at the beginning of where this mobile hockey stick will end up.

Advertisers and agencies will be the main drivers of growth.

However, sometimes it is about the application and sometimes it is about the Web, but it all depends on a campaign’s goal and target audience.

Mr. Murphy said that AdMob has seen an increase in application advertising – appvertising. AdMob proposes a blend of both to its clients.

“The WAP side is the work horse,” Mr. Murphy said. “The app side is the show horse, a sexier way to present advertising. There are cool capabilities.”

Microsoft Mobile Advertising's Ms. Wilson said it is not just about applications. On-deck media is hot and so is WAP advertising since most people can access the Web from their phones, but not all are able to get applications on their phones.

Per Mr. Glueck, on the Web marketers can just keep changing stuff to keep up with technology and phone capabilities.

“Creating a branded service for an application is great,” Mr. Glueck said. “But it may be better to have a great Web experience.”

Even the big players such as Google find applications expensive. The powerhouse claims it cannot afford to build native applications for all its offerings.

What will be the tipping point that will take the mobile adverting industry forward?

“I think it is awareness of the targeting capabilities that mobile offers,” Mr. Startzel said. “Targeting is available on mobile and awareness of that will change the industry.”

-Giselle Tsirulnik

Mobile Marketing Becoming a Necessity

Mobile marketing is becoming less of an option and more of a necessity for brands trying to reach consumers in a personal and engaging way.

This is especially true for content publishers such as Primedia, which owns and operates Apartment Guide and New Home Guide. Mobile has caused a rapid shift in strategy for old-school print offerings. These properties are now complemented with a digital strategy that includes both online and mobile.

Charles Stubbs, CEO of Primedia came to Mobile Marketer's offices in New York. Giselle Tsirulnik interviewed him. Here is what he said:

How has digital (mobile specifically) affected the print industry?
We really view the Internet and mobile as complementary to print. Our goal is to try and help people looking for a place to live and we do so through our flagship sites Apartment Guide and New Home Guide.

We take the integrated media approach because we want to be where all consumers are, whether it's on mobile, print or online.

How has consumer consumption of media changed over the last few years?
Clearly consumers are using many sources to make buying decisions. We already have a robust print offering and drive Internet and mobile usage.

I think mobile is clearly one of the fastest growing channels and there is a huge opportunity with the iPhone and other smartphones.

Are your iPhone, mobile Web and online experiences consistent? Why?
They are consistent and complementary. The reason is that we are building a brand and want to build awareness for it and make it recognizable. A consistency between all properties is key for that.

Right now a lot of young people are coming out of college and looking to move out on their own. We wanted to reach these young people in a manner they find most comfortable. Mobile fits this demographic.

What is the current state of mobile marketing?
Mobile is in its infancy. The channel has been talked about for some years now and we are starting to see some real traction. This encourages wireless Internet access.

I think we will continue to see improved devices, better application developer kits and will really start to see brands leveraging what mobile has to offer.

-Giselle Tsirulnik

Mobile Marketing Statistics

Mobile messaging just broke another record, according to a report that came out from VeriSign today. During the second quarter of 2009, VeriSign delivered a total of 94.8billion messages across its combined mobile mesaging platforms for an overall growth of more than 82 percent since Q2 of 2008.

- excerpt from Mobile Marketing Watch

How to monetize SMS alerts

EDITOR'S NOTE: Not only do our regular products lend themselves to this type of paid sponsorship, next week's release of Text Candy will be perfect for sponsor-supported content!!

I do not know about you, but I subscribe to all sorts of mobile alerts – sports scores for my favorite teams, breaking news from one of my local radio affiliates, airline departure and arrival updates when I am traveling, even weather alerts.

Mobile alerts reach me no matter where I am. They are free. They are sent in real time. Best of all, I can customize them exactly how I choose. Mobile alerts represent a great convenience for consumers, but what many do not realize is they also represent a great opportunity for marketers.

These days when so many brands are scrambling to create the hottest iPhone application, it is refreshing to know that simple, affordable, broad-reaching campaigns are still extremely effective methods of mobile marketing.

I include the oft-overlooked mobile alerts in this category. They represent mobile marketing in its most basic form – simple, permission-based, push text messages. Yet when used correctly, they can be an effective, measurable way to reach current and potential customers.

There are many kinds of mobile alerts – school closings, weather forecasts, breaking news and sports scores, to name a few.

If you can create a feed for it, you can turn it into a mobile alert. They are personal, customizable, broad-reaching and measurable – everything a marketer could ask for. They also represent an opportunity for your brand to reach consumers who you may not otherwise have been able to reach.

The opportunity in mobile alerts is twofold.

First, brand owners such as sports teams, airlines, broadcast stations and print media can use them to fully engage their fans, customers, listeners and readers.

If you have got breaking news, adding mobile alerts should be a no-brainer for you. They help you stay in touch with customers anytime, anywhere, even if they are not currently listening, reading, watching or engaging with your brand at that time.

However, the second and less obvious way to use mobile alerts is through sponsorships. Many news and information outlets sell sponsorships for their popular mobile alerts programs.

A great example of a successful alerts campaign is radio station WSPK in Poughkeepsie, NY. The station has always announced school closings during inclement weather, but recently decided to add a text message system that would alert students and parents via mobile phone if their school was closed.

Gone are the days of kids waiting by the radio all morning with their fingers crossed hoping that they will hear their school’s name announced. Students and parents can personalize their alerts for their school district and automatically receive notification as soon as school has been cancelled or delayed.

As you can imagine, in such a climate, the program has been very successful.

With a very large database of opt-ins, WSPK realized it they could begin selling sponsorships for these alerts. A local furniture store signed on for the entire winter season, netting the station revenue otherwise unavailable.

Obviously, prices vary based on the market and size of the opt-in database, but the message is clear – mobile alerts represent a large opportunity.

Sponsoring mobile alerts can represent a great opening for local businesses, as they often cater toward a specific geographic area and a specific demographic as well.

School cancelled in Poughkeepsie due to heavy snow? How about an ad from a local hardware store having a sale on snow blowers? Or an automotive store which sells snow tires?

Mobile alerts can generate real-time leads and better yet, measure results. Why not add a note saying, “Show this text message at the checkout to receive 15 percent off”?

With mobile alerts, you know exactly what is working and even have the ability to change or update campaigns in real time to improve conversions. So the next time you are planning a campaign, do not forget that sometimes simplicity is the best method.

-Eric Harber, president and chief operating officer of HipCricket

Coca-Cola’s SMS opt-ins increasing 5-10 percent monthly

Since Coca-Cola Co. launched My Coke Rewards three years ago, the mobile program has emerged as one of the most popular consumer packaged goods sites in mobile marketing, according to Harte-Hanks’ Aberdeen Group.

To participate in the program, consumers enter unique codes under the caps of specially marked Coke products online or by texting in the keyword to a short code. When they have accumulated enough points to redeem a reward from one or more of the program’s participating partners, they make their selection and the points are deducted from their account.

“Best-in-class companies [such as Coca-Cola] are increasing their focus on mobile marketing as a percentage of their overall marketing mix, with 71 percent indicating that their mobile marketing activities are integrated with their other marketing tactics and media buys either somewhat or extensively,” said Jeff Zabin, Chicago-based vice president and research fellow at the Aberdeen Group.

One-quarter of best-in-class companies indicate that mobile marketing now accounts for more than 10 percent of their overall marketing budget, he said.

For 18 percent of best-in-class companies, mobile marketing now accounts for more than 15 percent of their overall budget.

“It’s no surprise that mobile marketing is winning a greater share of marketing budgets, given the business benefits including improved brand image, increased market research capabilities and better response-tracking,” Mr. Zabin said.

From the start, Coca-Cola sought to take advantage of as many consumer connection points as possible. This included mobile devices, which has now become a major focal point for growing the My Coke Rewards program.

Reaching on-the-go consumers via their handsets is a priority for the beverage giant. But Coca-Cola stresses the fact the program goes well beyond just giving consumers the opportunity to text in codes at the point of purchase.

Event-based marketing is one way that Coca-Cola's Coke brand is creating interactive conversations with consumers via their handsets.

Instead of pushing messages out to consumers, Coke’s marketing strategy is focused on encouraging consumers to pull content from its various platforms, including mobile.

Engagement with consumers is much more valuable when the brand interaction is initiated by the consumers themselves.

...the company is primarily focused on acquisition growth rate, which is currently tracking at 5 percent to 10 percent per month for consumers who have completed the two-step process of linking their phones and then opting in to Coke’s SMS database.

Coke sends out text messages to that database regularly, which reinforces consumers’ brand loyalty.

Coke realizes how valuable the opted-in mobile loyalty club members are to its brand. Its job is to understand the best way to keep those consumers engaged and build those relationships over time, according to Coke.

“Consumers have high expectations for what brands should be doing,” he said.

“The increase in mobile opt-ins to My Coke Rewards of 5-10 percent per month is a sign that more and more consumers want to communicate with Coke via the mobile channel.”

-Dan Butcher

Crystal Hot Sauce SMS campaign sees 58 percent double opt-in

Baumer Foods' Crystal Hot Sauce ran a mobile campaign to build an opt-in mobile database of New Orleans Saints fans for highly-targeted future marketing efforts.

To accomplish this, Crystal Hot Sauce ran promotional spots as well as in-game telecast mentions on Cox Media’s CST network, during Saints’ games, prompting viewers to text to win a signed jersey and Crystal Hot Sauce gift pack.

”Crystal Hot Sauce and Baumer Foods are happy to be using mobile text advertising and the results speak for themselves,” said Tina Stubbs, marketing director at Crystal Hot Sauce, Metairie, LA. “We had an overwhelming response to our text sweepstakes and look forward to engaging with our customers, new and old, via this new marketing outlet.”

Consumers were encouraged to text SAUCE to short code 269411. Mobile was a great tool for this promotion because it enabled for effective engagement between the target audience and the brand.

The results were astounding. On one Saturday alone, the campaign received in excess of 4,700 responses, and more than 54 percent of respondents double opted-in for future offers.

During the course of the campaign the results were so unbelievable that Crystal Hot Sauce decided to incorporate a trivia component in order to further engage its target market.

“Cox Media delivered as promised plus more,” said Al Baumer, owner/president of Baumer Foods Inc., Metairie, LA. “Their positioning and timing of our ads and text messaging campaign were in appropriate concert with the live venue and best of all we received immediate feedback and confirmation that our ads were reaching our target market.”

To date this campaign has received more than 8,200 responses and achieved a double-opt-in rate of more than 58 percent.

Crystal Hot Sauce used mobile as a means of creating an exciting brand image and building awareness among the 23-54 year old male sports-fan demographic.

“When it comes to brand association in the sports broadcasting industry, most top U.S. brands choose to simply display a logo as opposed to utilizing engagement media,” said Isaac Naor, regional client services manager at Ping Mobile, Englewood Cliffs, NJ.

“Alternatively, Crystal Hot Sauce chose to forge a connection with their target market thus generating buzz, and building brand loyalty,” he said. “This is further evident by the late addition of the Trivia Thursday question component.”

-Giselle Tsirulnik

Opportunties grow to capture on-the-go audience

ADOTAS — Mobile consumption of Wi-Fi is on the rise as consumers become increasingly mobile.

According to JiWire, in its inaugural Mobile Audience Insights Report, the number of mobile devices accessing Wi-Fi hotspots grew by 79 percent in the first half of the year. While the iPhone and iPod Touch remain the most popular Wi-Fi enabled mobile devices, collectively representing 97.8 percent of all mobile device connections, the Palm Pre debuted as the No. 5 most popular mobile device in June 2009, just within the first three months of its introduction.

When looking specifically at the online audience in cafés and coffee shops, the findings reveal that people tend to use these venues as the extended ‘home office’ or ‘college library’ with 83 percent of users connecting locally in their own neighborhood. Additionally, 40 percent are business decision makers with management titles, 23 percent have C-level or VP titles, and 44 percent are in small- to mid-sized businesses, a traditionally difficult segment to reach. The café Wi-Fi audience also reported that 38 percent make an online purchase during their visit and 77 percent are in the market to make a major purchase in the next 12 months.

“The findings completely challenge the assumption that this is a task-oriented audience just checking e-mail or doing work. Instead, they’re fully engaging the internet when on the go — using social networks, researching products, and actively buying goods and services,” Kevin McKenzie, CEO of JiWire, said in a statement. “As people increasingly spend more time out of the home and out of the office, we look forward to sharing continued insights to help marketers better understand this hard to reach mobile audience.”

Jwire’s research provides a view into overall Wi-Fi usage trends, which includes breakdowns by country, US city and device type as well as specifics about the café Wi-Fi audience which is mostly affluent, male, between the ages of twenty-five and forty-nine, and planning on making a big purchase in the near future. The report is designed to help advertisers better engage their desired audience when they are on-the-go.

-Edward Barrera

Consumers accepting of mobile advertising

Smartphones are an excellent platform for advertising and represent a golden opportunity for marketers to reach consumers wherever they are, according to InsightExpress.

This was the key finding of their latest research, which explores mobile Internet engagement levels among smartphone owners in comparison to owners of other devices. The study also examined which factors drive mobile Internet users to return to specific sites.

“The nose-to-screen interaction with smartphones makes you block everything else around you out (at least it does for me, much to the annoyance of my husband), similar to what we see when people are focused on a task on the computer,” said Joy Cicman Liuzzo, director of marketing and mobile research at InsightExpress, Stamford, CT.

“We’re looking at the perfect storm of advertising,” she said.

InsightExpress’s latest numbers show that overall the adoption rate of smartphones is at 18 percent in the U.S.

Joy Cicman Liuzzo is director of marketing and mobile research at InsightExpress.
Smartphones are way past just being for the early adopters and offer opportunities for consumer campaigns that go beyond a simple banner.

As smartphones reach mass adoption, marketers and advertisers will use the technology differently—integrated cross-media campaigns that leverage the strengths of each medium.

What factors should be considered in order to encourage increased engagement and repeat site visits for mobile Internet users?

Design is certainly important, but if visitors are not engaged, then even the most sophisticated mobile site will not succeed.

However, the impact of the device itself, and the level at which it allows users to engage with the content, should not be ignored.

The study isolated engagement levels that users displayed while browsing the Internet, and found that smartphone users are as engaged with mobile Internet content as those who are browsing the Internet on their computer.

When mobile Internet users were asked to identify the top three elements that most influence their decision to return to a mobile Internet site, they reported: No. 1, the speed at which the site loads; No. 2, the ease of navigation on the site; and No. 3, the quality of the content on the site itself.

Publishers will likely welcome the news that the presence of advertising on a site does not lessen its appeal.

The lesson here for advertisers is that mobile advertising presents a unique opportunity to take advantage of high engagement levels and less clutter on the pages.

“All of a sudden, advertisers, agencies and marketers have access to an engaged audience that will be seeing a campaign in a near-perfect environment,” she said. “Quite honestly, you can’t ask for much more than that.”

-Dan Butcher

Mobile to inevitably become mainstream ad medium

Despite the recession, consumers are increasingly relying on devices and mobile marketing spend continues to grow because of this.

A recent report from Gartner projects that spending for mobile advertising worldwide will grow 74 percent this year to $913.5 million. One mobile marketing executive offered his insight into why the mobile sector is experiencing rapid growth despite the current unstable market and saturated space.

“We are a very significant buyer of ad inventory, online, TV, mobile and other channels, all of which we evaluate on a performance basis,” said Russell Klein, cofounder/CEO of SendMe Mobile, San Francisco.

“We’re constantly comparing mobile to other channels such as online and TV to gauge whether mobile is a worthwhile channel for us to invest in, and we see the growth of mobile on our side,” he said.

“We’re probably 24 months away from mobile being a mainstream medium for advertisers, but it’s almost inevitable that it will.”

Advertisers must recognize that mobile will have some limitations with regard to online and TV due to a smaller screen, Mr. Klein said. However, the mobile channel offers more in terms of targeting.

The hockey-stick adoption curve of smartphones has benefitted mobile advertisers and publishers alike.

“There are very nice pockets of pick-up on the mobile Web,” Mr. Klein said. “We’re focused on smartphones and the better quality of inventory we can source there, and we’re seeing a general increase in inventory.

Despite the current lull caused by the recession, the future of mobile advertising looks bright.

-Dan Butcher

Survey Ranks Effective Mobile Campaigns

Results from the latest global brand survey by BuzzCity have been released. It ranks the brands that have the most appeal among mobile viewing audiences.

Coming in first is KFC, a surprising victor over second place McDonald's. In third is Sony, followed by Nestle, Samsung, Nokia, LG, Coca-Cola, Panasonic, and Philips.

The survey shows that users typically base their preferences on brand performance first, followed by style and then price. Quality, reliability, value and trust all also influence choice.

While surveys are always important, how mobile marketers interpret them is even more
important. The companies cited in this list have all experienced a considerable degree of success in their mobile efforts. The challenge now is culling from these examples lessons to apply to our own mobile efforts.

If anything, the study further emphasizes that successful mobile marketing campaigns are those that get people talking about brands and more abstract concepts. The study, after all, reveals that 54% of mobile users would recommend a brand to their peers while only 4% would in reaction to a specific sales promotion.

More than five in six households have a mobile phone

Consumers of all ages and family situations continue to incorporate technology more deeply into their daily lives, according to Forrester Research. But what role does mobile play?

According to Forrester’s “State of Consumers and Technology: Benchmark 2009,” consumers place much more importance on mobile phone service than on home phones and they express this priority with their wallets.

Through the past 11 years of large-scale benchmark surveys, we’ve observed digital technology taking an increasing role in consumers’ lives,” The Forrester report says. “Today, technologies like PCs and mobile phones, which were once reserved for the most well-heeled tech freaks, are in three-quarters of U.S. households.”

Forrester’s State of Consumers and Technology: Benchmark 2009 is a graphical analysis of the U.S. consumer market based on Forrester’s “North American Technographics Benchmark Survey, 2009.” It forecasts device and service adoption, and it provides an overview of U.S. consumers’ demographics, behaviors, and technology attitudes based on a mail survey of 47,946 respondents.

Average household spending on mobile phones far outstrips the monthly allocation for a home phone, Internet, or paid television.

Broadband penetration is highest among younger singles and couples — and the service is most likely to come from their cable provider — while this group is the least likely to have a home telephone line.

Home networks, 78 percent of which use wireless, have made their way into one-third of U.S. households, and nearly half of households with a fiber broadband pipe.

More than five in six households have a mobile phone, led by young families at 93 percent.

But older families have the greatest density of active mobile phones per household: 57 percent have at least three.

Continued consolidation in the market, in particular Verizon Wireless’ acquisition of Alltel, places 82 percent of subscribers with the top four providers.

With an overall market share of 2 percent, Apple is a very small player in the market; however, among the 15 percent who regularly access the Internet on their phone, its share is five times higher.

Young singles and couples, those younger than 40 whose sole responsibility is themselves or their partners, represent nearly 19 million U.S. households and 49 million adults, of which 87 percent are online.

These consumers live a large part of their lives online. The time they spend online, both for personal and work purposes, exceeds that of any other group.

“They are also more likely to go online in places other than home or work, and they tend to carry the Internet with them, whether via a wireless home network or out and about.,” the report says. “For example, young singles and couples are 55 percent more likely than the average U.S. adult to access the Web on their phone."

-Giselle Tsirulnik

Smartphones & GPS Fuel Mobile Ad Growth Spurt by 2013

Mobile marketing's time to shine may be here, or at least just around the corner. By 2013, research firm Gartner reports that mobile ad spend will surpass $13 billion. The new report states that this year alone, mobile ads will grow 74 percent to $913.5 million.

But 74% growth this year is nothing compared to the expected explosion of mobile ad spend in 2011 due to an increase in mobile spending from ad agencies and divisions. By 2013, Gartner expects mobile ad spend to surpass $13 billion. Asia-Pacific will lead the growth, followed by North America and Europe, says the report.

Gartner predicts that local-based targeting will be one of the main types of mobile marketing set to take off, with the improvement of GPS technology making location-targeting more appealing to marketers.

The overall growth in mobile ad spend signifies a shift in marketing mindsets all over to embrace all forms of digital strategies. Fueling the growth is the rapid adaption of smartphones such as the iPhone and Blackberry, which Gartner expects to account for 45.5 percent of all mobile phone sales in 2013, up from just over 9 percent in 2008.

Smartphone Sales to Surpass PCs by 2011

If you notice every other person around you with a smartphone these days, you're not alone. Smartphone sales will surpass worldwide PC sales by the end of 2011, says a recent report by RBC analyst Mike Abramsky.

While mobile phone sales overall have decreased, smartphone sales have gone up. Mobile phone sales worldwide hit 286.1 million units in the second quarter of 2009, down 6% year-over-year, reports Gartner. Smartphone sales passed 40 million units, a 27% increase from the same period last year.

In the U.S., smartphones reached 28% of overall purchases, which was an increase of 47% from the second quarter last year. The iPhone 3G and the BlackBerry Curve were the top-selling smartphones for the quarter, NPD said.

With smartphone sales expecting to continue their upward trend, the major PC players are looking for action. Beyond Apple, companies like Dell are prepping to fight it out in the smartphone circuit. In recent weeks Asus has teamed up with Taiwan's Chunghwa Telecom to start selling the Nuvifone M20, a Windows Mobile smartphone. Meanwhile, Acer plans to send its three latest smartphones to market in September, with two of the new handsets priced for the recession.

Domino’s Pizza: Mobile commerce growing at astounding rate

Domino’s Pizza is driving traffic to its newly optimized mobile Web site with mobile advertising and seeing a surge in revenue from its mobile commerce platform.

While the pizza franchise continues to invest heavily in traditional media, it has seen significant growth from its mobile initiatives and plans to increase its investment in the mobile channel going forward.

“Mobile is a rapidly growing segment of our business, one that we expect to grow for years to come,” said Rob Weisberg, vice president of multimedia marketing at Domino’s Pizza, Ann Arbor, MI. “A major growth agent for our company over the last few years has been online ordering in the digital space.

“As more consumers are walking around with smartphones, mobile will be an increasingly major area of growth for the organization,” he said. “Mobile commerce today in the U.S. is still in its infancy, but it’s growing at an astounding rate.

Domino's Pizza had global retail sales of over $5.5 billion in 2008, comprised of nearly $3.1 billion domestically and over $2.4 billion internationally.

Domino's Pizza is seeing success from its mobile couponing initiatives
Mobile coupons have been increasingly relevant for consumers—and thus an increasingly effective tool for brands—during the current recession.

“It’s an optin relationship—we don’t spam anybody, they have to go to our mobile site or Dominos.com to opt-in, and having done so, they’re entrusting us with that personal information.”

Mr. Weisberg says that marketers must appreciate the level of trust that opting-in requires, and not abuse that trust.

“By opting-in to receive these communications, you’re ensuring that you’ll receive the strongest deals Domino’s has to offer, mobile coupons that link directly back to our mobile ordering site,” he said. “In terms of ease and convenience of the transaction, mobile commerce can’t be beat.”

-Dan Butcher