Survey: Lack Of ROI and Education To Blame For Those Hesitant Of Mobile Marketing

It’s easy to get caught up in the concepts of mobile marketing and advertising when you’re heavily involved and knowledgeable on the subject, but it remains a fact …

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Survey Lack Of ROI and Education To Blame For Those Hesitant Of Mobile MarketingIt’s easy to get caught up in the concepts of mobile marketing and advertising when you’re heavily involved and knowledgeable on the subject, but it remains a fact that marketers in general are still largely hesitant when it comes to the still relatively new world of mobile marketing.

A new survey conducted by R2integrated (R2i) discovered several reasons why marketers are still showing reluctance to the concept.  Primarily, a general lack of understanding and a way of quantifying the return on investment were two areas respondents indicated were of most concern.

Still, 22% of survey respondents said that mobile marketing is “very important” to their overall marketing strategy for 2010, while 26% said “important” and 28% said “somewhat important.”  Overall, only 8% said “not important,” while the majority of respondents, 41%, said their main reason for executing a mobile marketing campaign was “company awareness,” followed by “lead generation” at 33%.

Not understanding how to fully determine ROI was deemed the “most critical area of improvement” for planned mobile marketing campaigns among respondents at 43%, while 49% said an increase in customers would measure a successful campaign.  With so many mobile channels to utilize, the apparent ambiguity surrounding the concept for most marketers, and a lack of certain analytics all make determining and planning for ROI more difficult.  “It appears that 2010 will be a year of experimentation and education on mobile marketing as marketers struggle to come to terms with its practicality and ROI,” said Matt Goddard, co-founder and CEO, R2i.  “This shouldn’t suggest that marketers ought to table their mobile marketing plans, but that they should pay considerable attention to how they can connect the dots back to driving revenue.”

The most interesting aspect of the survey was how respondents plan to utilize mobile marketing; more than half (52%) of respondents said that their mobile marketing campaign would focus on mobile Web site development, while 40% said they would focus on mobile application development.  When asked to rate the importance of mobile platforms, 59% of respondents said the iPhone and 40% said the BlackBerry were “very important,” while only 7% thought that Android was a “very important” platform.  Blackberry never seems to be high on the list of attractive mobile platforms for mobile app developers, so this struck me as surprising.

“I think because the technology is still working to fully prove itself, most marketers are playing it safe by focusing on the mobile browsing experience, where they can leverage existing Web assets, rather than on mobile marketing where the ROI proposition is still being evaluated,” said Goddard. “The iPhone still reflects the largest base for marketers to sell into even though Android may be the platform du jour in terms of hype.”

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    […] often to make immediate buying decisions. Still, with all that explosive market and growth data, marketers hesitated to allocate budget to mobile marketing. When it came to the hard questions of mobile ROI and volume, marketers were […]

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    […] you are thinking of exploring mobile marketing in 2010, you are not alone: a modern survey by R2integrated had 22% of respondents show that mobile marketing is "very important" to their 2010 […]

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    […] new survey conducted by R2integrated states that, “more than half (52%) of respondents said their mobile marketing campaign would […]

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    […] you are thinking of exploring mobile marketing in 2010, you are not alone: a recent survey by R2integrated had 22% of respondents indicate that mobile marketing is “very […]

  5.    Reply

    Great article.

    For many marketers the mobile channel is going to be a very valuable route to customers. Challenge for many is to simply understand the channel and what it can deliver; it is very different to the fixed online environment.

    It is not surprising that many suggest that not understanding how to fully determine ROI is a barrier. The reality is many are thinking about the execution before the strategy, they are embroiled in the technology and forget the marketing principles.

    When consumers are mobile there are very different motivations, patience and tolerance far lower immediacy often key. People want to typically undertake an action.

    The first place to start is on the ‘What’ – what do you do expect a consumer to do as a result of seeing the execution or interacting the service? Mobile activity is extremely measurable – ROI should be the easy part.

    Second the ‘Why’ – why is the offer or service relevant when they are mobile? Transposing the organisation web assets online is often not an answer – when usability and consumer experience is critical to gain engagement.

    Third the ‘How’ – how are you going to approach deliver? At this third stage should the element of application vs web enter; the Apple, Blackberry Android or the campaign placement discussions. After all these are executions and should not drive the marketing strategy.

    For 8 core principles when thinking mobile: http://www.indigo102.com/archives/970

  6.    Reply

    Great stats and article. Thank you for writing and publishing it.

    Now, let’s look at how many “users” and “smartphones” are really in use, not just sold, but in use w/plans; for that may also be a contributing factor as to the shyness of advertisers and marketers.

    Another factor may be that today’s numbers are so different from old-school numbers, it may take the older companies longer to participate with the “new world” or should I say, the “present state of being”.

    Additionally, anything “new” such as mobile advertising and marketing takes time to absorb and adjust to.

    There are a myriad of ways to market on mobile – sms, lbs, directory, mobile internet, video, gif, permission, intrusion, etc. There are far more creative decision and civil decisions to be made, when it comes to audience and their personal devices.

    Thank you again for bringing light to the issue of mobile marketing and its lag.