Image via Wikipedia

Borrell Associates, which specializes in research covering local and online advertising, issued a new report this week called  “Main Street Goes Mobile” that examines the role that mobile media is projected to play in  local business marketing over the next five years.

Pointing to a business and consumer environment ready to embrace mobile advertising, Borrell cites statistics indicating that a full third of website readership already accesses information via mobile devices. Meanwhile, half of local businesses report plans to engage in mobile marketing.

These local marketers plan to commit roughly 20% of their budgets to this effort. Will they follow through? While mobile marketing (and hyperlocal efforts in general) can be turnkey in some respects, there are still costs to consider, along with the navigation of complex technologies and new business relationships.

The difficulties most local (and national) businesses encounter with online and mobile implementation have led directly to the rise of a media middleman — Groupon is a well-known example. Whereas traditional ad agencies and marketing firms handle creative and placement, taking fees directly from advertisers, many local advertisers are opting for promotions and other efforts that come without a clear price tag attached. Using the model embraced by many group deal sites, advertisers actually receive money from these middlemen (albeit much less than they would from traditional customer engagements) rather than doling it out.

Borrell projects that, by the end of 2011, 1/3 of all mobile phone users will have smartphones. Soon, mobile capabilities will be the price of entry for marketers. Advertisers are looking to firms like Groupon, LocalUp and GeoIQ to keep their advertising efforts streamlined, transparent, and supported on multichannel platforms.

We’re talking about real money here. Borrell projects that local online advertising will reach $18 billion by 2016, with local mobile couponing at $3 billion. While this growth is occurring at a rate much faster than the slow initial shift to online advertising, we need to remember that there is already what Borrell calls an “installed base”: advertisers and consumers comfortable with online marketing, for whom the addition of mobile is simply a shift within a familiar environment.

In an important divergence from ads of the past, “the medium is no longer the message,” according to the report.

Borrell asserts that “mobile is not a channel — it’s a [series of] platforms,” allowing real-time engagement with consumers. Within mobile usage lie options for email and paid search advertising. Both of these highly popular functions provide a fertile environment for mobile advertising. But advertisers are also examining text / SMS, downloaded apps (a key opportunity) and in-game environments. And not all these channels will grow at the same rate.

In an important divergence from ads of the past, “the medium is no longer the message,” according to the report. With content and channel decoupled, advertisers need to consider that communication can be delivered in a number of ways at a number of different moments in a consumer’s day, and need to plan their messaging accordingly. Even the way the industry measures and tracks marketing success will need to change, since we are going beyond eyeballs and “impressions” to assessing the distinct action a consumer takes (or doesn’t take).

The research firm notes that local radio companies have largely missed the boat when it comes to online marketing opportunities, leaving the spoils to companies like Pandora and Slacker. This is a useful observation, as local radio really does seem half-hearted about its online presence; it will be interesting to watch future activity in this space.

The report includes a number of insightful charts projecting revenue and growth rates for components within mobile advertising. While national ad spending continues to rise in some channels, it drops in others, and local ad spending is projected to rise across the board.

An especially interesting point is the blurred point of difference between promotions, which have traditionally been more B2B-focused, and advertising, historically a B2C effort. Driven by coupons and discounts / deals, mobile marketing is starting to move across each category of US promotional spending.

Coupons, discounts and deals have “evolved,” Borrell says, to a balance point where they are both easy to execute and appealing to consumers. Other, more complex promotions prove to be more challenging to implement. An example: proximity marketing is enjoying press exposure right now. Borrell projects that the nascent marketing structure will hit its stride about two years from now. For the moment, promotions involving geolocation and “fencing” are too complex, data-driven and expensive for all but large national advertisers to take on.

It would seem that there is a major creative opportunity for middlemen — or traditional ad and marketing firms — to help develop effective and simple creative to push through these new channels, allowing advertisers to retain their hands-off status. Gradually, however, the creative quality will be forced to improve, based on consumers’ heightened expectations and the risk otherwise of saturation.

Borrell’s report effectively illustrates the skyrocketing growth of mobile marketing and advertising, as well as clarifying the multiple channels that fall within our current definition of “mobile.” They do remind the reader, though, that this all exists within a much larger bucket of money still being spent by national advertisers on traditional marketing and advertising efforts. Mobile marketing is an infant: tiny, but loud, and getting louder.

Via: http://streetfightmag.com/2011/08/12/borrell-report-local-marketing/

The North American market will account for roughly 1/5 of the $3.3B total this year, or roughly $707M, and 28% in 2015 — or $5.8 billion. That’s equal to about 20% of the estimated $26 billion in U.S. Online ad spending projected for 2015. Breaking it down a bit further for 2011, search- and map-related advertising will account for the largest share of ad dollars by far, at nearly $1.5 billion globally.

Mobile Web display and in-app display ads will each account for just over $800 million, audio/video will generate $96 million, and SMS/MMS and Instant Messaging advertising will make up $112.5 million.

By 2015, however, the split in ad-spending will level out a bit as display closes the gap with search. Search in four years will account for about $7 billion; mobile Web display, almost $6 billion; in-app display, $5.3 billion; audio/video, $2 billion and SMS/MMS/IM, $247.3 million, according to the research. The most interesting tidbit from the data was Gartners predictions for the mobile app vs. mobile Web debate.

The research firm expects mobile apps to have the upper hand when it comes to drawing ad dollars until 2013, “when the mobile Web will eventually return as HTML5 standards become established.” ”While the growth rate for mobile advertising will peak in 2011 and in 2012, more than doubling each year, it won’t reach its optimum point for some time,” stated the report. ”We expect that targeting and contextualization, especially in social sites and applications, will carry on improving throughout the forecast period and beyond.”

Via: http://www.smaato.com/blog-mobileadspend2011/

The need for trust, value and brand transparency, among other trends from last year, are just as important today. But the current shift to geotargeting, mobile marketing and online reputation management require that small businesses modify their plans to surpass competitors.

Here are 10 marketing trends that small businesses should incorporate now to be positioned for success from the start.

1. Building reliable brand advocates. The idea that you need tens of thousands of Twitter followers, blog subscribers, LinkedIn connections and Facebook friends to build your business via social media is dead. Quality connections with those who are loyal to the business and the brand are far more helpful to spread your message than large groups of connections who disappear after the first interaction.
2. Excelling in one area rather than being all things to all people. This will be a year for small businesses to focus on their unique niches and position themselves as the definitive source for information, products and services related to the specific places in the markets where they operate.
3. Creating quality content as a viable marketing tool. Social media marketing and content marketing go hand-in-hand, and this is the year businesses will create useful content that adds value to the online conversation and to people’s lives. The Web is a cluttered place. Amazing content is essential to break through the noise.
4. Moving more marketing dollars to social media. Statistics show that large and small companies are shifting budget dollars to social media and other digital marketing initiatives and away from print and radio advertising. Consumers spend more time online than ever and to reach them and stay competitive, small businesses need to have a presence on the social Web.
5. Tracking brand reputations on the social Web in greater detail.Social media has given consumers a large platform to voice their opinions, and small-business owners are realizing the importance of actively monitoring their reputation on the Web. With dashboards and social media aggregators like Hootsuite and Spredfast, it’s easier than ever for small businesses to develop, nurture and track their stature online .
6. Increase in branded online experiences to meet diverse consumer needs. Simply having a Twitter account or Facebook page isn’t enough this year. Small businesses must surround consumers with branded online destinations such as a blog, LinkedIn profile, YouTube channel, Flickrprofile and so on. Consumers can then pick and choose how they want to interact with your brand. Of course, quality trumps quantity, so extending a brand across the social Web must be done strategically to maximize opportunities without compromising content and communications.
7. Pursuing mobile marketing. There is absolutely no doubt this is the year of mobile marketing. While still in its infancy, it is the marketing imperative of the future. With mobile advertising, branded mobile apps and mobile marketing apps like Foursquare, consumers will expect businesses to have a mobile presence in 2011.
8. Geotargeting and localized marketing will become a top priority.Local discount websites like Groupon and local review sites like Yelp make it easy for consumers to find deals and reviews about businesses in their neighborhoods and beyond. Creating targeted, local marketing campaigns using these popular tools will become the norm this year.
9. Accepting that silo marketing is ineffective. Offline, online and mobile marketing initiatives create an opportunity to lead consumers from one message to another by integrating those strategies. You can drive a significantly higher return on investment by cross-promoting branded online destinations, discounts, contests and events.
10. Co-marketing to boost returns and lower marketing costs. The economy is still struggling, which means small businesses can benefit from economies of scale by partnering with complementary businesses todevelop co-marketing programs in 2011. Promotional partnerships not only lead to reduced costs but also can lead to increased exposure to new audiences.

This year, all businesses will be experimenting with a variety of online, localized and mobile marketing initiatives. Remember, even if you’re not leveraging marketing trends and opportunities, your competitors are.

Via: http://www.entrepreneur.com/article/217849