n the marketing world, mobile advertising is the way of the future. Advertising through this medium is similar to advertising online although the potential target is much greater. In 2009, the number of mobile phones in the world totaled over 4.6 billion. Computers totaled less than a quarter of that. Currently the amount spent on mobile advertising is only around 1% of total advertising budgets. Media for mobile phones is quickly evolving. Approximately 90% of the United States population owns a cell phone according to CTIA, the International Association for the Wireless Telecommunications Industry.
Mobile advertising has really taken off in countries like Spain, France and Japan. In Japan, 44% of mobile phone users click on ads they receive via their phones. The largest mobile advertising company in Japan, D2, announced in November of 2009 that the industry was worth 900 million dollars in their country alone. There are several forms of mobile ads from web banners to SMS advertising to advertising within applications and games. Other forms include audio or video recordings that play while interacting with different services. You can get free instant access to the best mobile marketing newsletter.
According to Mashable, an online guide to social media and one of the top ten blogs worldwide, trends to watch in mobile advertising include:
– Innovations through SMS
– Advancements with rich forms of media like sound, gaming and video
– Mobile applications or mobile websites
– Geo-location as an advertising tool
– The role of mobile video
– Innovations through SMS
Of the available mobile phone models, 98% are capable of short message service, or text messaging. This form of communication is one of the most popular methods in the world. Text messaging is easy to use with a low-cost. There are no applications needed to text another person. Service providers offer a range of options from unlimited plans to plans that give up to 250 messages per month. Even if a person opts out of a text message plan, he or she still is capable to receive a message. Statistics show that in late 2008, the average American user sent 357 text messages per month. Experian reported that text messages are usually read within 15 minutes of being received and responded to within an hour while email messages might go unread for several days.
Advancements with Rich Media
With the number of smartphones saturating the market, rich media will begin to have a stronger foothold in the mobile advertising industry. Consumers prefer engaging, interactive ads, designed through rich media like gaming, sound and video. A drawback to this form of mobile advertising is that skills and time are necessary to create ads. Big companies have the advantage with this media as they are more likely to have the budget and staff capable of tackling this type of advertisement.