MOBILE MARKETING OPPORTUNITIES AND CHALLENGES FOR THE FUTURE

Mobile device marketing opportunities and challenges for the future

Introduction

Consumers now spend more time online via mobile devices and within mobile apps, than on desktop computers, while mobile is the top digital ad category for growth at more than 42%1Chaffey, D. (2018). "Mobile Marketing Statistics compilation” [Online]. Available: https://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/ [Accessed 21 March 2018]. ,2Digital Marketing Institute, (2018). "5 Predictions on the future of Mobile Marketing” [Online]. Available: https://digitalmarketinginstitute.com/blog/5-predictions-future-mobile-marketing [Accessed 21 March 2018]. . This review considers two opportunities and two challenges for mobile device marketing.

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Using a mobile device in-app advertising for digital marketing (opportunity)

In-app advertising has arisen as the fastest growing form of mobile advertising, as more consumers are increasing media time spent in smartphone and tablet applications, according to an American study3Desaulniers, T. (2018). "Why in-app advertising is a must for marketers” [Online]. Available: https://www.mobilemarketer.com/ex/mobilemarketer/cms/opinion/columns/23348.html [Accessed 22 March 2018]. ,4Hsien Sherwood, I. (2017). "Mobile apps dominate smartphone screen time, but fewer apps share in the bounty” [Online]. Available: https://www.campaignlive.co.uk/article/mobile-apps-dominate-smartphone-screen-time-fewer-apps-share-bounty/1430347 [Accessed 7 April 2018]. . It is the perfect direct marketing channel as ads can be personalized, highly targeted and relevant, which in turn, improves engagement from people making in-app ads one of the best ways to increase digital advertising ROI.

A great example of a highly relevant In-app advertising comes from Audible and appears at the top of the screen within the Podkicker podcasting app. Showing an ad within Podkicker has great relevance for Audible, as it reaches an audiophile audience.

Audible - Banner App Ad - Source - Localytics Blog - 7 Exceptional App Ads That Actually Drive Installs

Audible - Banner App Ad - Source: Localytics Blog - 7 Exceptional App Ads That Actually Drive Installs – Available: http://info.localytics.com/blog/app-install-ads [Accessed 8 April 2018]

In the long run, mobile in-app advertising revenues worldwide are expected to surpass US$117 billion by 2020, making it a great opportunity for marketers to increase their marketing message reach via this advertising channel5Statista, (2018). "Worldwide mobile in-app advertising revenues in 2015, 2016 and 2020 (in billion U.S. dollars)” [Online]. Available: https://www.statista.com/statistics/220149/total-worldwide-mobile-app-advertising-revenues/ [Accessed 11 April 2018]. .

Big Data for mobile device marketing (opportunity)

It is mobile data that is driving the largest surge in big data volumes, not only capturing consumer usage patterns, smartphone penetration, but also data from apps in the background6Cavallo, A. (2015). "Big Data Can Drive Digital Marketing and Customer Experience Success” [Online]. Available: https://www.linkedin.com/pulse/big-data-can-drive-digital-marketing-customer-success-cavallo-jr-/ [Accessed 23 March 2018]. .

Real-time analytical customer-focused Big data is already being used for example by Amazon, to personalize recommendation suggestions it offers its customers. Its recommendation algorithm incorporates various big data from mobile devices, desktop, social media mentions, the impact of friends, Amazon browsing history, purchase history, and customers who made similar purchases among many factors considered before a product is recommended7Meera, A. (2016). "How Amazon Uses Its Own Cloud to Process Vast, Multidimensional Datasets” [Online]. Available: https://dzone.com/articles/big-data-analytics-delivering-business-value-at-am [Accessed 9 April 2018]. .

Amazon product recommendation engine

Amazon product recommendation engine Source: Digital-Warriors - The Value of Product Recommendation Marketing to Small Businesses
Available: http://www.digital-warriors.com/product-recommendation-engine-value-small-businesses/ [Accessed 8 April 2018]


Amazon product recommendation engine

Amazon product recommendation engine Source: Digital-Warriors - The Value of Product Recommendation Marketing to Small Businesses
Available: http://www.digital-warriors.com/product-recommendation-engine-value-small-businesses/ [Accessed 8 April 2018]


Amazon product recommendation engine

Amazon product recommendation engine
Source: Smart Hint - Recommendation System and Amazon's Secrets
Available: http://www.smarthint.co/recommendation-system-amazons-secrets/ [Accessed 8 April 2018]


Amazon product recommendation engine

Amazon product recommendation engine
Source: Mage Plaza - Product Recommendation: How Amazon Succeeds With It
Available: https://www.mageplaza.com/blog/product-recomendation-how-amazon-succeeds-with-it.html [Accessed 8 April 2018].


In the long run, the implications of big data on mobile advertising cannot be ignored, as it provides more optimized personalization, deeper insights on today’s consumer in real-time, and the ability to deliver hyper-local marketing approaches8Business Insider UK, (2013). "How mobile marketing is being shaped by the explosive growth in big data” [Online]. Available: http://uk.businessinsider.com/big-data-is-key-to-mobile-marketing-2013-8?r=US&IR=T [Accessed 24 March 2018]. ,9Estrada, N. (2013). "Leveraging Big Data to Reach Today’s Mobile Consumer” [Online]. Available: https://www.wired.com/insights/2013/08/leveraging-big-data-to-reach-todays-mobile-consumer-2/ [Accessed 24 March 2018]. ,10Babcock, C. (2015). "Big Data Moves Toward Real-Time Analysis” [Online]. Available: https://www.informationweek.com/big-data/software-platforms/big-data-moves-toward-real-time-analysis/a/d-id/1320952? [Accessed 24 March 2018]. ,11Moore, M. (2016). "What real-time data streaming means for the enterprise” [Online]. Available: https://sdtimes.com/appdynamics/real-time-data-streaming-means-enterprise/ [Accessed 24 March 2018]. ,12Cameron, L. (2017). "Latest trend in big data analytics: immediate real-time streaming insights” [Online]. Available: https://publications.computer.org/cloud-computing/2017/10/16/big- datasolutions-for-disease-outbreak-natural-disaster-traffic-problems/ [Accessed 24 March 2018]. .

Lack of mobile device marketing strategy (challenge)

The growth of mobile device usage has increased exponentially in the last decade, but, lack of mobile marketing strategy has arisen as one of the challenges still holding back businesses. Organizations are not allocating sufficient resources to maintain, adapt, and improve the mobile experience in a fashion that aligns with the dynamic consumer expectations of today. There is not an industry or business that cannot benefit from an advanced mobile marketing strategy and whole industries have been “disrupted” by the impact of consumers increasing their time surfing websites and apps via mobile devices.

For example, in North America, more than half of marketers already consider mobile a major disruption, but more than half of the client-side and agency marketers still have no formal mobile strategy, even though, mobile marketing budgets are set to increase.

The State of Mobile Marketing in North America

Taptica - Source: Report: The State of Mobile Marketing in North America - Available: https://blog.taptica.com/mobile-north-america/ [Accessed 10 April 2018].

The State of Mobile Marketing in North America

Taptica - Source: Report: The State of Mobile Marketing in North America – Available: https://blog.taptica.com/mobile-north-america/ [Accessed 10 April 2018].

The State of Mobile Marketing in North America

Taptica - Source: Report: The State of Mobile Marketing in North America – Available: https://blog.taptica.com/mobile-north-america/ [Accessed 10 April 2018].

In short, if there is no mobile marketing strategy, consumers using their mobile devices to proactively engage with a brand, are undoubtedly going to come across competitors. Therefore, brands without a strategy, risk losing business, which will have big implications for those brands in the future.

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Lack of mobile device marketing skills (challenge)

Lack of mobile marketing skills remains a challenge for most businesses, even though, mobile advertising has exponentially grown in the last few years. This problem has arisen due to marketers being too slow to adopt mobile marketing and many Digital Marketers do not specialize, as well as, partly rooted in the overall digital marketing talent gap13Overmyer, K. (2015). "Mobile Marketing Strategy Spend Increases, Results Remain Elusive” [Online]. Available: https://www.skyword.com/contentstandard/marketing/mobile-marketing-strategy-spend-increases-results-remains-elusive/ [Accessed 25 March 2018]. ,14Target Internet, (2018). "Why is there a digital marketing skills gap – and how can your business bridge it?” [Online]. Available: https://www.targetinternet.com/why-is-there-a-digital-marketing-skills-gap-and-how-can-your-business-bridge-it/[Accessed 25 March 2018]. ,15Mobile Marketing Watch, (2013). "Marketers Still Slow to Adopt Mobile” [Online]. Available: https://mobilemarketingwatch.com/marketers-still-slow-to-adopt-mobile-32015/ [Accessed 25 March 2018]. ,16Evenstad, L. (2017). "Slow technology adoption linked to low productivity among UK business, CBI says” [Online]. Available: http://www.computerweekly.com/news/450429868/Slow-technology-adoption-linked-to-low-productivity-among-UK-business-CBI-finds [Accessed 25 March 2018]. .

Mobile Device Marketing Strategy Spend Increases, Results Remain Elusive

Skyword - Source: Mobile Device Marketing Strategy Spend Increases, Results Remain Elusive
Available: https://www.skyword.com/contentstandard/marketing/mobile-marketing-strategy-spend-increases-results-remains-elusive/ [Accessed 10 April 2018].


In short, the implications for not updating the skillset required for mobile marketing, not only will result in an even larger skills gap then what currently exists, but it will also hinder brands from developing a future mobile marketing strategy as they are interlinked 17Burstein, D. (2013). "Mobile Marketing: 6 mobile marketing challenges every marketer faces” [Online]. Available: https://sherpablog.marketingsherpa.com/mobile/mobile-marketing-challenges/[Accessed 25 March 2018]. .

Summary

As mobile devices and internet usage increases, there will be more opportunities for marketers to increase their marketing reach, whilst, also facing equally difficult challenges.

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References
1 Chaffey, D. (2018). "Mobile Marketing Statistics compilation” [Online]. Available: https://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/ [Accessed 21 March 2018].
2 Digital Marketing Institute, (2018). "5 Predictions on the future of Mobile Marketing” [Online]. Available: https://digitalmarketinginstitute.com/blog/5-predictions-future-mobile-marketing [Accessed 21 March 2018].
3 Desaulniers, T. (2018). "Why in-app advertising is a must for marketers” [Online]. Available: https://www.mobilemarketer.com/ex/mobilemarketer/cms/opinion/columns/23348.html [Accessed 22 March 2018].
4 Hsien Sherwood, I. (2017). "Mobile apps dominate smartphone screen time, but fewer apps share in the bounty” [Online]. Available: https://www.campaignlive.co.uk/article/mobile-apps-dominate-smartphone-screen-time-fewer-apps-share-bounty/1430347 [Accessed 7 April 2018].
5 Statista, (2018). "Worldwide mobile in-app advertising revenues in 2015, 2016 and 2020 (in billion U.S. dollars)” [Online]. Available: https://www.statista.com/statistics/220149/total-worldwide-mobile-app-advertising-revenues/ [Accessed 11 April 2018].
6 Cavallo, A. (2015). "Big Data Can Drive Digital Marketing and Customer Experience Success” [Online]. Available: https://www.linkedin.com/pulse/big-data-can-drive-digital-marketing-customer-success-cavallo-jr-/ [Accessed 23 March 2018].
7 Meera, A. (2016). "How Amazon Uses Its Own Cloud to Process Vast, Multidimensional Datasets” [Online]. Available: https://dzone.com/articles/big-data-analytics-delivering-business-value-at-am [Accessed 9 April 2018].
8 Business Insider UK, (2013). "How mobile marketing is being shaped by the explosive growth in big data” [Online]. Available: http://uk.businessinsider.com/big-data-is-key-to-mobile-marketing-2013-8?r=US&IR=T [Accessed 24 March 2018].
9 Estrada, N. (2013). "Leveraging Big Data to Reach Today’s Mobile Consumer” [Online]. Available: https://www.wired.com/insights/2013/08/leveraging-big-data-to-reach-todays-mobile-consumer-2/ [Accessed 24 March 2018].
10 Babcock, C. (2015). "Big Data Moves Toward Real-Time Analysis” [Online]. Available: https://www.informationweek.com/big-data/software-platforms/big-data-moves-toward-real-time-analysis/a/d-id/1320952? [Accessed 24 March 2018].
11 Moore, M. (2016). "What real-time data streaming means for the enterprise” [Online]. Available: https://sdtimes.com/appdynamics/real-time-data-streaming-means-enterprise/ [Accessed 24 March 2018].
12 Cameron, L. (2017). "Latest trend in big data analytics: immediate real-time streaming insights” [Online]. Available: https://publications.computer.org/cloud-computing/2017/10/16/big- datasolutions-for-disease-outbreak-natural-disaster-traffic-problems/ [Accessed 24 March 2018].
13 Overmyer, K. (2015). "Mobile Marketing Strategy Spend Increases, Results Remain Elusive” [Online]. Available: https://www.skyword.com/contentstandard/marketing/mobile-marketing-strategy-spend-increases-results-remains-elusive/ [Accessed 25 March 2018].
14 Target Internet, (2018). "Why is there a digital marketing skills gap – and how can your business bridge it?” [Online]. Available: https://www.targetinternet.com/why-is-there-a-digital-marketing-skills-gap-and-how-can-your-business-bridge-it/[Accessed 25 March 2018].
15 Mobile Marketing Watch, (2013). "Marketers Still Slow to Adopt Mobile” [Online]. Available: https://mobilemarketingwatch.com/marketers-still-slow-to-adopt-mobile-32015/ [Accessed 25 March 2018].
16 Evenstad, L. (2017). "Slow technology adoption linked to low productivity among UK business, CBI says” [Online]. Available: http://www.computerweekly.com/news/450429868/Slow-technology-adoption-linked-to-low-productivity-among-UK-business-CBI-finds [Accessed 25 March 2018].
17 Burstein, D. (2013). "Mobile Marketing: 6 mobile marketing challenges every marketer faces” [Online]. Available: https://sherpablog.marketingsherpa.com/mobile/mobile-marketing-challenges/[Accessed 25 March 2018].

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