Mobile Marketing Advertising Budgets Will Increase In 2012 Due To Smartphone Sales

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The increase is predicted to be driven by massive Smartphone sales which have more than doubled each year.

Digital Marketer
Ecommerce on smartphones in 2010 and 2011 was less than 2% of all online sales. According to a survey by e-tailing, consumers cite the lack of shopping on smartphones to be due to the small screen size.

Marketers should take note of the exponentially rising sales of smartphones as a sign that mobile phone marketing is going to replace online marketing as the main way that advertisers reach the public. Mobile marketing advertising budgets will also see huge increases in 2012, according to the managing editor of Digital Marketer, the world's leading online marketing newsletter.

About 43% of Americans with cellphone service own smartphones, according to Nielsen. But even with so many smartphones out there, the actual purchases made on smartphones have been low. In fact, prior to 2011, mobile marketing sales on smartphones accounted for less than 2% of all ecommerce in the USA, which was a clear sign to internet marketers to avoid the mobile hype until smartphones begin to command more of the ecommerce marketplace.

Some teachers selling mobile courses in the last few years have claimed 300% increases in overall USA ecommerce sales on smartphones; however this was a slightly deceiving number, as the full disclosure shows that the numbers were 0.2% increasing to 0.6% over several years, yes 300% but still less than 1% overall. Overall ecommerce on smartphones in 2011 totaled approximately $5 billion. While this sounds like a big number, it represents less than 2 percent of the overall online commerce market in 2010. With less than 2% of all ecommerce being on smartphones, it has not been an attractive market for advertisers.

According to Digital Marketer, a pragmatic approach to mobile marketing has been wise up until now, but all signs point to increases in mobile marketing advertising budgets this year, driven by the exponential increase in smartphone sales.

In 2011 only 0.9% of advertising dollars went into mobile advertising; however, the mobile ecommerce statistics should start to improve in 2012. With the sheer number of smartphones being purchased, methods for purchasing using smartphones will surely be improved and then advertising should follow.

According to a survey by e-tailing, consumers cite the lack of shopping on smartphones to be due to the small screen size. But with bigger smartphone screens, there should be an increase in ecommerce purchases on smartphones as well.

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Dennis Murphy
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