MMA Report Suggests Worldwide Mobile Ad Spend Could Reach $220 Billion
September 30, 2014
Report Extrapolates the Size and Growth Potential of Mobile Ad Spend and Indicates Popular Market Projections Have Been Underestimated
New York – September 30, 2014 – The Mobile Marketing Association (MMA), the leading global trade association for the mobile marketing industry, today released a report titled, How Big is the Mobile Marketing Opportunity, which explores the mobile ad market opportunity for both marketers and mobile ad/media sellers. Based on a study that combines empirical data about the effectiveness of mobile advertising with estimates of future mobile device market penetration, the report suggests that global ad spend could reach as much as $220 billion globally and $70 billion in the U.S. alone (excluding mobile search).
While most popular projections are based solely on time spent, this analysis includes empirical data from a newly developed groundbreaking research methodology (SMoX) that allows MMA’s brand partners to measure the ROI of mobile and its optimized level in the marketing mix. The conclusions of the report confirm what many in the industry suspected: that the current allocation to mobile by marketers is disproportionately low. If marketers were to adjust their mix to align with the current patterns of marketing ROI and media consumption, marketers’ allocations to mobile would rise dramatically. In fact, early indications suggest that the optimized level of media spend should increase by 4-7x compared to current levels in the marketplace.
“Our analysis indicates that the amount brands should spend on mobile has been grossly underestimated and that the industry is likely to be larger than currently predicted,” said Greg Stuart, CEO at the MMA. “We hope this report challenges marketers and agencies to look deeper at how they are allocating their ad dollars, as marketing executives who choose to move first to optimize mobile advertising spend will open an important competitive advantage – a tangible share shift. For the largest advertisers, this could mean hundreds of millions of dollars of additional annual revenue with billion dollar incremental market cap implications, all without spending another advertising dollar.”
As the MMA continues its SMoX studies, it will gather and analyze more data in order to further assess the impact that this issue will have on the industry. For now, brands should consider using this report as a catalyst for amending their own mobile advertising strategies. Regardless of variances in marketing objectives, it’s clear that marketers, on average, are spending significantly less than they should on mobile and are losing out on sales and profits. The pace of current change by consumers to mobile presents the opportunity for winning brands to exploit innovation and grab a competitive advantage. This can be accomplished with a costless move of optimizing mobile within a mix. For mobile ad sellers and publishers, the benefit is obvious. Those who invest in best practices, strengthen their capabilities and increase their value to marketers stand to gain the most.
Stuart will discuss these results in more detail today during opening remarks at the MMA’s annual SM2 Innovation Summit at Highline Stages. Focused on how mobile is driving the innovation of marketing, SM2 will feature three “experience rooms”. One will be focused on The Internet of Things (IoT), where attendees can interact with a variety of wearable technologies and check out a Lincoln MKZ Connected Car, one on cross-screen and creative from winning Smarties campaigns, and one that will feature a “who’s who” of leading brands participating in the keynote room. If you’re interested in attending SM2, please visit: http://www.mmaglobal.com/sm2/register.
To download the full report, please visit: http://www.mmaglobal.com/documents/how-big-mobile-marketing-opportunity.
About the Mobile Marketing Association (MMA)
The MMA is the world’s leading global non-profit trade mobile marketing association comprised of more than 800 member companies, from nearly fifty countries around the world. Our members hail from every faction of the mobile marketing ecosystem including brand marketers, agencies, mobile technology platforms, media companies, operators and others. The MMA’s mission is to accelerate the transformation and innovation of marketing through mobile, driving business growth with closer and stronger consumer engagement. Anchoring the MMA’s mission are four core pillars; to cultivate inspiration by driving the innovation for the Chief Marketing Officer; to build the mobile marketing capabilities for the marketing organizations through fostering know- how and confidence; to champion the effectiveness and impact of mobile through research providing tangible ROI measurement; and advocacy. Additionally MMA industry-wide committees work collaboratively to develop and advocate global best practices and lead standards development.
Mobile Marketing is broadly defined as including advertising, apps, messaging, mCommerce and CRM on all mobile devices including smart phones and tablets. Members include, American Express, AdChina, Colgate - Palmolive, Dunkin’ Brands, Facebook, Google, Group M, Hewlett Packard, Hilton Worldwide, Kellogg Co., L’Oréal, MasterCard, McDonalds, Microsoft, Mondelez International, Inc., Pandora Media, Procter & Gamble, R/GA, The Coca-Cola Company, The Weather Company, Unilever, Visa, Vodafone, Walmart, xAd, Zenith Optimedia and many more. The MMA’s global headquarters are located in New York with regional operations in Europe/Middle East/Africa (EMEA), Latin American (LATAM) and Asia Pacific (APAC). For more information about the MMA please visit www.mmaglobal.com