Opportunity in Your Hand

The economy’s in the doldrums. Ad revenue is down. But the next breakthrough marketing opportunity may be right in your hand. Handheld or mobile marketing is positioned for growth, according to new research from the Mobile Marketing Association (MMA). MMA claims mobile marketing budgets will increase 26 percent this year, even as marketing budgets generally decline.

Nielsen confirms mobile advertising is finally gaining traction. A 2008 Nielsen study showed mobile ad views rising and indicated that about half of mobile data subscribers exposed to an ad responded to it.

One reason mobile marketing is growing is simply because of the growth in the number of mobile data users. While accessing the Internet via handheld devices has been available for some time, today’s smartphones – Apple’s recently upgraded iPhone, Blackberry models, and the upcoming Palm Pre – are driving the market for mobile web usage. The skyrocketing number of applications for these devices makes connecting online even more desirable. Some estimates put U.S. mobile usage at nearly 100 million by 2013 – about double what it is now.

A recent study by The Kelsey Group says the real growth opportunity will be in local mobile advertising. Revenue from local mobile ads will reach over $3 billion in 5 years, up from $160 million last year. Mobile search will reach over $2 billion.

A consumer is literally carrying around a local advertising medium in his or her pocket. The handheld can receive messages, ads, promotional offers, and coupons on a local basis. Built-in GPS technology makes it even more seductive. You can walk into a store and take advantage of an e-coupon you just received on your mobile device, generated for that very store, in that very location. This is the ultimate one-to-one electronic connection a retailer can make with a customer.

Mobile marketing is just a tiny fraction of marketing budgets today, but it’s not hard to imagine a future in which it becomes an important means of targeting personalized promotions directly to consumers. If consumers perceive those promotions to be of value, they will only reinforce the desirability of mobile marketing.